Monthly Newsletter – December 2015 Issue
As we approach the end of another calendar year, I have listed a few things toconsider doing before the end of the year, for your 2015 personal tax return.
Tax installments
Avoid unnecessary penalty and interest. If you were required to pay installments for 2015, ensure that this has been done. The final installment is due on Dec.15th.
Donations
The holiday season is a popular time to make donations and those made prior to Dec.31st. will qualify for a tax deduction in 2015.
Investments
If you have realized capital gains in 2015 and unrealized capital losses that you are thinking of selling, consider selling them by Dec.23rd, to help reduce the capital gains tax. Talk to your investment advisor to see if this is a good idea for you.
Capital cost allowance
If you are planning to buy a vehicle, computer or other capital item on which you plan to claim capital cost allowance, you should consider doing it now. You can claim half of the % rate allowed in the first year and deduct it in 2015.
Rental property
Are you thinking of selling a rental property with capital gains? You may want to close in 2016 to defer any taxes payable to next year. A vendor take back mortgage can also help defer taxes. If you are planning any repairs, try to get them done now so you can deduct the expense in 2015.
RESP and RDSP
Reminder to consider contributing to Registered Education Savings Plan or Registered Disability Savings Plan, if applicable, before end of year to qualify for the 2015 gov’t grants.
Car expense deduction
Ensure you have a summary of your car operating expenses and a log of your business KM vs. total KM driven in 2015. Without a log you risk denial of your car expenses by CRA. Keep actual receipts as backup for your car expenses and do not rely on just your visa statements. Start your 2016 mileage log in January.
Other notes
Talk to your accountant early this month about your tax planning opportunities. I hope you find this general information helpful. Please consult with your accountant or myself if you have any questions.
I wish everyone a joyous holiday season and a healthy and prosperous 2016.
This material is provided for general information and is subject to change without notice. Please consult with your professional advisor before you act on any of the above information to ensure it’s right for you.