Year-End Tax Planning 2016
December 31, 2016 is fast approaching…see below for a list of tax planning considerations.
Tax Tips Include:
- Certain expenditures made by individuals by December 31, 2016 will be eligible for 2016 tax deductions or credits including: moving expenses, child care expenses, charitable donations, political contributions, medical expenses, alimony, eligible employment expenses, union, professional, or like dues, carrying charges and interest expenses, certain public transit amounts, and children’s fitness and arts amounts. Ensure you keep all receipts that may relate to these expenses.
- You have until Monday, March 1, 2017 to make tax deductible Registered Retirement Savings Plan (RRSP) contributions for the 2016 year. Consider the higher income earning individual contributing to their spouse’s RRSP via a “spousal RRSP” for greater tax savings.
- The age limit for maturing Registered Pension Plans, RRSP, and Deferred Profit Sharing Plans is 71 years of age.
- If you own a business or rental property, consider paying a reasonable salary to family members for services rendered. Examples include website maintenance, administrative support, and janitorial services.
- A senior whose 2016 net income exceeds $73,756 will lose all, or part, of their Old Age Security. Senior citizens will also begin to lose their age credit if their net income exceeds $35,927.
Please contact us for further details or to discuss whether these may apply to your tax situation.Download Full List