Tax law can be complex. There’s much to know to be sure you’re doing all you can to get what you deserve. Here are some personal and business tax tips to get you started.
Tax planning for you and your family
- Contribute as much as you can up to your RRSP limit and contribute early in the year instead of the following February.
- Contribute up to $2,500 annually to your Registered Education Savings Plan (RESPs) and earn a 20% government grant (CESG), no matter what your family income is, and if you are resident in the Province of Quebec you can earn an extra 10% on your contribution.
- Structure your investments to make interest deductible
- Combine your charitable donations with your spouse and claim them on the higher-income spouse’s return
- Consider the potential benefits of incorporating it If you own a business,
- Contribute up to $5,500 annually to your TFSA for tax-sheltered growth
- Compare the advantages of TFSAs, RRSPs, and RESPs
- If you have a corporation, calculate your optimum salary/dividend mix
- Considering splitting pension income with your spouse
- Take advantage of family income-splitting opportunities such as spousal loans
- Make a will and update it regularly to minimize taxes on death
- Claiming medical expenses, on your tax return, may provide substantial tax savings.
- The first-time homebuyer will now be able to claim a personal amount of $5,000 in respect of the purchase of a qualifying home. The tax savings generated after it has been converted into a non-refundable tax credit will therefore be $750 (calculated based on $5,000 x 15%).
- First-time Home Buyer Plan(HBP) enables the purchaser to borrow up to $35,000 from RRSP which can be repaid over 15 years.
- You can claim eligible child care expenses for up to $7,000 for each child under the age of 7 and up to $4,000 per child under the age of 16, and for each child who is eligible for Disability Tax Credit, the deduction limit is $10,000. Also if you are a resident in the Province of Quebec, you may eligible for an additional refundable tax credit up to 75% of the expense.
- If you relocate to start a new job or a new position with the same employer, you may be able to deduct some of your moving expenses from your taxable income.
If you have any questions about the tax tip or any other matter related to your personal or business income tax, don’t hesitate to give us a call at 514-585-6848, we look forward to assisting you!!!