Fifteen 2020 Year End Tax Tips  

   

  1. Set aside money for taxes owing on government programs such as the   CERB and the CRB.  

   2. When possible, take advantage of the new Canada Training Credit.  

   3. If applicable, apply for the Disability Tax Credit. 

   4. With interest rates low and promising times ahead, consider borrowing to invest. 

   5. If applicable, take advantage of the Canada Caregiver Credit. 

   6. Consider a spousal loan to income split at the prescribed rate. 

   7. Consider converting your RRSP to a RRIF at age 65 and be sure to withdraw $2,000.00 to take advantage of the pension income tax credit. 

   8. Review your portfolio with your trusted advisor – rebalance to take advantage of preferential tax treatment where possible. 

   9. Make a point to buy glasses, hearing aids, orthotics, medical supplies and prescriptions, as well as get dental work done before year-end. 

  10. For those charitably inclined, consider donating stock (which has accumulated capital gains) “in kind” to your favourite charity. 

  11. Contribute to your RSP or, if advantageous, to your spouse’s RSP especially to ensure you maximize your benefits. 

 12. Take tax losses where possible and defer your capital gains. 

 13. Contribute fully to your TFSA or withdraw from your TFSA before year end. Be sure to avoid triggering over contribution penalties! 

 14. Delay December GIC maturities/purchases until January. 

 15. Organize your receipts to take advantage of all tax deductions and tax credits for a maximum refund and a less stressful tax season.

  

Download these tips and our tax questions here and be ready for the upcoming Tax Season!

 

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