Year-end tax list

Year-end to-do tax checklist

December is a very busy month for most people. However, take some time to review the year-end tax checklist - it could save you tax $$$. Before December 31 you should consider the following:

  • Evaluate your remuneration strategy;
  • Make capital acquisitions for the business (self-employed, contractors, doctors, dentists etc.) before year-end. Tax deduction is available at half rate in the year of acquisition and at the full rate in subsequent years;
  • Pay tax deductible expenses;
  • Reduce or eliminate non-deductible interest loans (i.e. personal debt) before repaying business or investment loans;
  • Make a Tax Free Savings Account contribution;
  • Make a Registered Education Savings Plan contribution;
  • Final RRSP contribution for 71 year-old taxpayers;
  • Consider income splitting loans - the interest is still at 1%. Interest on income splitting loans must be paid by January 30 of the following year, to avoid income attribution;
  • Review your investment portfolio and consider selling losing stocks to reduce capital gains realized during the year;

For more information on tax opportunities available, please call us.

Your trusted Chartered Accountant provides tax services to individuals, self-employed, contractors, doctors and dentists.