DEFINITION of 'Attribution Rules'

A set of rules created by Canada Revenue Agency (CRA) that prevents investors from transferring assets between family members with the intention of avoiding taxes.

BREAKING DOWN 'Attribution Rules'

The goal of these rules is to prevent individuals in higher tax brackets from transferring assets to family members who are taxed at lower marginal rates in an attempt to evade being taxed at their own high rate. These rules were implemented to close a loophole in the Canadian tax system.

RELATED TERMS
  1. Canada Revenue Agency - CRA

    A federal agency that collects taxes and administers tax laws ...
  2. Netfile

    Open February to September, this service is one of the electronic ...
  3. Income Splitting

    A tax reduction strategy employed by families living in areas ...
  4. Uniform Transfer Tax

    A combination of federal estate taxes and federal gift taxes. ...
  5. Community Reinvestment Act - CRA

    An act of Congress enacted in 1977 with the intention of encouraging ...
  6. Transfer Tax

    Any kind of tax that is levied on the transfer of official documents ...
Related Articles
  1. Managing Wealth

    What New IRS Rules Will Do to Partnerships, LLCs

    The pending IRS rule changes for partnerships and LLCs could drastically curtail the way assets within them are valued and taxed. Here's why.
  2. Financial Advisor

    Family Business Estate Tax Loophole Could Be Closed

    The Treasury department is aiming to close a loophole that would result in higher estate and gift taxes for some wealthy business owners.
  3. Taxes

    Why Your Tax Bracket Is Not the Tax Rate You Pay

    Understanding how federal and state tax brackets work is important for tax planning – and for making sense of the political conversation around tax reform.
  4. Taxes

    Federal Tax Brackets

    Why do we have income tax brackets? What do they do for us? Read this to understand the basics and where to find your own bracket.
  5. Taxes

    7 Ways to Create a Tax-Efficient Portfolio

    Taxes may be a necessary evil, but that doesn't mean they can't be reduced. Here's a host of smart moves today's investors can make.
  6. Taxes

    A Concise History Of Changes In U.S. Tax Law

    We look at how U.S. taxes have changed since their inception.
  7. Taxes

    How Are Capital Gains And Dividends Taxed Differently?

    Individuals in the 25% or higher tax bracket pay a 20% tax on long-term capital gains.
  8. Taxes

    3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.
  9. Taxes

    Understanding Taxes

    Taxes are mandatory fees that individuals and corporations must pay to their governments.
  10. Taxes

    Do Tax Cuts Stimulate The Economy?

    Learn the logic behind the belief that reducing government income benefits everyone.
RELATED FAQS
  1. What's the difference between the marginal tax rate system and a flat tax?

    Find out about the difference between marginal tax rates and flat taxes. Gain insights on both systems and the arguments ... Read Answer >>
  2. How does the marginal tax rate system work?

    The marginal tax rate is the rate of tax that income earners incur on each additional dollar of income. As the marginal tax ... Read Answer >>
  3. Are tax brackets adjusted for inflation?

    Learn about U.S. tax brackets and how the U.S. Internal Revenue Service (IRS) makes annual inflation-based adjustments for ... Read Answer >>
  4. How does the effective tax rate for an individual differ from that of a corporation?

    Read about the effective tax rate for individuals when compared with the effective tax rate for corporations, including how ... Read Answer >>
  5. What is the justification for allowing deferred tax liabilities?

    Understand the justification for allowing deferred tax liabilities. Learn the reasoning behind why a company would want to ... Read Answer >>
  6. How can I find out which income tax bracket I am in?

    Find out how to determine your federal income tax bracket and calculate how much you will owe in federal taxes with online ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center