We may be approaching the most wonderful time of the year, but December is also when to make moves that could save you money come tax time.
“Most people think of tax time as April, but it’s really all year long,” says Caroline Battista, a senior tax analyst with H&R Block Canada. “You want to be keeping your receipts all year long, but there are few things you can do at this time of year that can really help you out.
“Nobody wants to pay more taxes than they really owe,” she adds. “Income tax is the one time of the year you can get some money back”. Read More…
Ahh i didn’t know that donating to a charity could save me so much in taxes. Very interesting. I’ve always considered donations to a pet shelter (i love cats) but i now have an even bigger motivation to do it this year.
Learned a lot thanks for sharing! 🙂
Hold up…so one can get credits for getting your kids active? Huh? Really? When did this happen. My kids are in shape but its nice to know we can write this off 😛
One of the big surprises to me was how taxes differ in a TFSA investment account. I never realized how its not beneficial to have U.S. holdings in a tfsa — should be Canadian equity. Didn’t know that until this year. Live and learn.
A lot of good advice in this piece. My spouse and I continuet o max out or RESP for our two children and we do so religiously. The tax benefits are very helpful especially with another child on the way.
I assume it’s not possible to convert your RRSP to an RRIF sooner than 71? What happens if one becomes disabled long before that? I’d imagine it would be more ideal to get income right away.
I usually do my taxes long before the new year in hopes of sifting through the tax code for new benefits. I read this articile and didn’t learn anything i didnt know already but for most people this is good advice.
Can someone better explain the part about investment income splitting?
It goes on to mention about 1% federal rate but i don’t fully understand how this benefits the lender. Is it saying you would loan your income to someone in your family at a rate of 1%. if so then how does this benefit me? How much do i write-off?
I have a big smile on my face because I made a sizeable donation to Red Cross this year. Some years I love CRA! This year is one of them 🙂