Report outlines potential tax-savings opportunities for discussion with an advisor
"It's important to review your overall tax-planning strategy with a professional now and ensure you're making the most of any opportunities available to you, especially as a result of new savings and investment vehicles, credits and policy changes that came into effect for the first time in 2009," advises
The report covers the following tax topics, for discussion with a financial advisor:
1) Tax-loss selling - Tax-loss selling is the practice of selling investments which are in an accrued loss position at year-end in order to offset capital gains realized either this year or in the previous three years. In order to realize losses on public securities, trades must generally be made on or before
2) Advice for homeowners and prospective homeowners - 2009 brought significant tax changes for homeowners, prospective homeowners and even homeowners who renovated their home, cottage or condo. Canadians should be aware of changes made to the federal Home Buyers' Plan (HBP) and consider their eligibility for the new non-refundable First-Time Home Buyer's Tax Credit (HBTC). Canadians considering any home renovations only have until the end of
3) RRSP annuitants who turn 71 in 2009 - Canadians who turned 71 earlier this year only have until
4) Contribute to an RESP - Registered Education Savings Plans (RESPs) remain the single best way to save for a child's post-secondary education, as recent enhancements resulted in both more time and additional room to contribute. RESPs also offer investors the opportunity to supplement their savings with a number of government grants.
5) Make a donation -
6) Contribute to an RDSP - Canadians eligible for the Disability Tax Credit, their parents and other eligible contributors have until
7) Purchase business assets - Self-employed or small business owners should consider accelerating the purchase of new equipment or office furniture planned for 2010 to take advantage of a full year's depreciation. A time-limited special 100% write-off is available for new computer equipment.
8) Consider a prescribed rate loan at 1% - With the
9) Pay any investment expenses by year-end - Interest paid on money borrowed for investment purposes as well as investment counseling fees for non-RRSP accounts can be deducted on your 2009 tax return but the amounts must be actually paid by
10) Apply now to pay less tax all year - Apply now to reduce tax deductions at source for 2010 by completing the CRA Form T1213 before
"Looking ahead to 2010, it's important to view tax-planning as an ongoing process, not a year-end rush," Golombek urges. "Consult with a tax professional to create an individualized strategy and identify opportunities to save all year round."
To view the full report and other CIBC tax reports, please visit www.cibc.com.
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