Tax & Financial Planning Strategies

Claim all relevant tax deductions:

  • Pension income splitting — A higher-income spouse allocates up to half of his or her pension income that qualifies for the pension tax credit to his or her lower-income spouse.

  • Carrying charges (investment counsel fees related to non-registered accounts that are not considered commissions) and certain interest expenses may be deductible.

  • Child care expenses — Claimable by the lower-income parent who works or attends school, subject to limitations.

  • Moving expenses — If you moved more than 40 km closer to work or school.

  • Employment expenses — Have your employer sign Form 2200 to verify your entitlement. Travel expenses to and from work are non-deductible.

Defer certain discretionary deductions. 

Consider waiting until a future year to claim some deductions when they may be worthmore in after-tax dollars:

  • RRSP deductions — Contributeto an RRSP and have the investment accumulate on a tax-deferred basis.

  • Net capital losses — If acapital loss exceeds your current year capital gains, you may be able to carryback that loss three years or forward indefinitely, but you may only use thatloss to offset capital gains of those years.  

 

Ask us about:

  • Non-refundable tax credits to reduce yourfederal and provincial taxes, i.e. Credit splitting, Charitable Donations, Medical Expense Credit.

  • Tax-Free Savings Accounts. A flexible savings vehicle that allows Canadians to save for short and long term goals while earning tax free investment income and growth. All income and withdrawals from a TFSA are generally tax free.

  • Spousal loans — an income splitting strategy

  • Income splitting — the ability to utilize lower tax rates of various family members to decreasethe overall tax burden of the family.

  • Registered Education Savings Plans (RESPs) — With the ever increasing cost of post secondary education, the tax-deferred growth of a Registered Education Savings Plan (RESP) and the Canada Education Savings Grant (CESG) are attractive ways to plan for this major life event.

  • Registered Disability Savings Plans (RDSPs) — a plan designed to help contribute to the long term financial security for a person with a disability.

  • Interest deductibility

  • Principal residence exemption 

     

Contact us for more detailed information in context of your unique circumstances and needs.

 

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