I trust that you have had a good year so far and an amazing summer. I spent a good part of my free time visiting Asia, relaxing in the Caribbean and trekking around Newfoundland. I even spent a couple of days in Paradise. Yes, the town of Paradise, in Newfoundland, that is.
Pictures are to follow soon on my Facebook page HelenaCFP. While you are there, take a look at our “Retire Right” page and “like” it.

The end of the third quarter is fast approaching, it is time to do a mid-year review, if you have not yet done so.

A few important items to consider for all taxpayers:

• Eligible Tax Benefits: Did you receive those tax benefits that you qualified for such as GST/HST refund, Ontario Trillium benefit and Child Tax benefit. If you filed your tax return on time, you should have received those payments already.
• Medical Expenses: This has been one of the most under-claimed areas. The 12-month rule allows you to claim any 12-month period ending in the tax year for yourself, your spouse and your eligible dependents.
  Plan payments for your major medical expenses to take advantage of this rule. Most of the time, the lower-income spouse should make the claim, with some exceptions.
• TFSA Withdrawals: This has been one of the most misunderstood areas. Any withdrawals made from your TFSA in the year will only be added back to your TFSA contribution room at the beginning of the following year.
  If you are going to withdraw from your TFSA soon, it is best to do it before the end of the year (instead of the beginning of next year.)
• Investment Portfolios: when was the last time you reviewed your investment portfolios with your advisors? You work hard for your money. Make sure it works just as hard for you.

A few important items to consider for self-employed individuals:
Being your own boss comes with few extra tasks such as:

• Bookkeeping: gather up and organize your receipts, invoices, motor vehicle expenses, business use-of-home expenses, etc.
  Whether you use a bookkeeping service or do it yourself, do NOT wait until the end of the year. Do some diligence now and save yourself some headaches at tax time. Better yet, get it done quarterly.
  We do offer income tax return and bookkeeping services. Reach out if you need a hand.
• Business Income: by now, you should be able to make an estimate of your income for the year. Are you on track with your business goals? And what lessons can you learn from this?
• Tax Liabilities: now that you’ve done the first two steps, you can estimate your tax payable amount. Did you put aside some money for those payments?
  Don’t forget the GST/HST payment if you are a GST/HST registrant.
• Depreciable Asset Purchases: the CRA has a first-year rule on most of depreciable properties. That means you can’t deduct the full cost of depreciable property for the year in which you acquired the property. You can reduce your “loss” portion by planning your purchases near the end of your fiscal year.

I trust that you find these highlights useful.
If you need a hand, or simply would like to discuss these and/or other tax planning strategies and how they affect your financial plan, contact me directly.

Remember to always “Dream It. Plan It. Live It.”

I am here to help you on your journey. Reach out if I can be of any assistance.