To every blog there is a ‘good-news’ portion and a ‘bad-news’ one. First the ‘good-news’! The last few weeks have been extraordinarily busy one here at AYTL. It would seem that every time when the CRA sends out a large quantity letters to individual who have not filed that our volume of work increases. This year the last several weeks have been filled with late filers—hence we have been very busy and yes we make more money when we are busier but alas ‘bad-news’ happens. In this case I have been unable to get to writing my blog on a more punctual basis and the 5 last minute tax saving tips that I promised several weeks ago have been late. But no more waiting and here they are:
1- Moving: If you are planning on moving early next year (especially to a province with a lower marginal tax rate) you should consider moving by December 31 of this year. Since you pay tax in the province of residence on December 31 you may have an advantage if you move now rather then later.
2- Loan to Spouse: Income splitting or loaning funds to your spouse may be advantageous. This is a touchy subject and musty be handled carefully to be accepted. However it should be considered for high income individuals. Better do some planning and call either Anthony Mastrogiovanni or myself for assistance in setyting up.
3 – RESP: If you are contributing to a Registered Educational Saving Plan, make your contribution before the year end in order to qualify for the 20% Canada Education Saving Grant.
4 – Installment payments: Don’t wait until early next year to make your final installment on your 2012 income taxes. Make your payment before December 31 and save the interest. Call us for more information.
5 – RRSP: YES I did show this a a year end tip on my previous blog, but it is the best and worth mentioning again for emphasis. I could mention it a third time but I am sure you get the point.
That is it! If you followed our advice you should save money on your next Personal Income Tax return.
I am signing off now and wishing one and all a safe holiday season and a prosperous New Year.