Don’t start thinking about tax planning just at the time of filing. In fact, you can start right now if you have been dormant about it. Tax filing deadline for year 2016 is either May 1, 2017 or June 15, 2017. It is a good time to reflect upon what has been done and what needs to be done for effective tax planning and to minimize your taxes.
Plan accordingly with your ZRPC tax advisor and consultant and you’ll get a better insight.
• You’re a bit late for…
If you’ve just started thinking about your tax planning you are a tad bit late for selling investments and stocks with an accrued loss. They are to be sold on or before Canadian Stock Exchange’s last trading day for settlement in 2016 the last day for which fell on December 23, 2016. Legal Ownership must also be transferred before year end.
Also some payments eligible for tax deduction should be paid by the end of year such as alimony and maintenance, child care expenses, professional dues, investment counsel fees, charitable donations, medical expenses and political contributions.
• You’re not late for…
(1) Making a contribution to your Registered Retirement Savings Plan (RRSP), which must be made on or before March 1, 2017. You can check your RRSP contribution limit online using Canada Revenue Agency’s (CRA’s) “My Account”;
(2) Making your HBP (Home Buyer’s Plan) contribution. This amount must be repaid to your RRSP account by March 1, 2017;
(3) Paying interest on low-interest loans by January 30, 2017;
(4) Paying reasonable salaries to family members if you are running a business with your family. Payable on or before February 28, 2017;
(5) Reimbursing the operational benefit on employer-provided automobiles.
Make 2016 tax filing easy and profitable cy consulting with your ZRPC tax consultant now. It’s never too late.