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disclaimer: I'm not a tax professional and please consider this as FYI only. i am personally implementing this strategy.

DrStan has the correct solution. You can in fact loan your spouse funds to invest so any income earned is taxed in her hands. With the new CRA prescribed rate at 1% this solution is very effective.

Remember that there "must" be a formal loan document, the spouse must physically pay the interest on the loan by January 30, so the lender will earn 1% interest (taxable) on the loan, the borrower can deduct the interest paid to the spouse an expense. If you forget to pay the interest or can't prove that you did CRA will deem the transaction a sham and the whole thing will be declared void. This link is a bit dated with respect to the prescribed rate but explains the strategy very well.

http://www.fiscalagents.com/newsletter/4ca_tec_spousalloans.shtml

Some caveats, remember that any securities that you sell/loan to your wife have some tax consequences. For instance if you have a bank share and you wish to loan this to your wife, CRA deems your loan as a disposition of shares and any gain is taxable in your hands. Your spouse's ACB is the price on the day you sold/loaned it to her. If the deemed disposition is at a loss it is deemed a superficial loss and is not deductible by you. This loss is added to your spouse's ACB.

Hope this helps. Good luck.
 
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