As the year 2023 comes to an end, we would like to share with you some tax tips that may help you save money and plan ahead for the next year.
- Investors: Consider tax-loss selling, paying investment expenses, converting your RRSP to a RRIF by age 71, making or withdrawing from RRSPs and TFSAs, and avoiding superficial loss and swap rules.
- Home buyers and owners: Take advantage of the new First Home Savings Account, the Home Accessibility Tax Credit, and the Multigenerational Home Renovation Tax Credit for eligible renovations.
- Families with students: Make or withdraw from RESPs to benefit from the Canada Education Savings Grant and the Educational Assistance Payments.
- Family members with disabilities: Contribute to a Registered Disability Savings Plan to receive government grants and bonds, and make withdrawals for those with shortened life expectancy. If you or a family member has Type 1 Diabetes, you may be eligible for the Disability Tax Credit (DTC).
- Individuals making gifts: Make charitable donations by December 31 to get a tax receipt for 2023, and consider gifting publicly-traded securities or using a donor advised fund to optimize your tax benefits.
- Individuals expecting changes to tax rates: Shift income and expenses between 2023 and 2024, where feasible, to take advantage of lower tax rates in either year. Be aware of the proposed changes to the Alternative Minimum Tax system that may affect you in 2024.
- Business owners and employers: Choose between salary and dividends for compensation, consolidate losses within a corporate group, plan for business transition, income splitting, passive investment income, and loss planning.
