As the year is coming to a close, it is time to do a year-end review, if you have not yet started, and start planning for the coming year.

Important items to consider for all taxpayers:

• Home Accessibility Tax Credit: This is a non-refundable tax credit for eligible expenses incurred for work performed or goods acquired for a qualifying renovation of an eligible dwelling of a qualifying individual.
  • A maximum of $10,000 per year in eligible expenses can be claimed, resulting in a maximum non-refundable tax credit of $1,500 ($10,000 x 15%).
• Medical Expenses: 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.
  • Depending on your situation, you might want to prepay certain medical expenses to claim the expenses for 2018.
• RDSP: A beneficiary’s RDSP can receive a grant on contributions made until December 31^st of the year in which the beneficiary turns 49. Maximum matching grants in one year is $3,500.
• RESP: you can receive the Canada Education Savings Grant (CESG) on the first $2,500 in contributions per year, or up to the first $5,000 in contributions, if sufficient carry forward room exists.
  • If you have not yet contributed the above amount, consider doing so before the year-end to maximize your annual matching.
  • If your child turned 15 this year, December 31^st is your last chance for opening an RESP account for that child & starting the first contribution.
• RRSP: you have until March 1^st, 2019 to make a contribution toward your 2018 tax year.
  • If you turned 71 this year, December 31^st  is the last day that you can contribute to your RRSPs. If you still have contribution room left, consider over-contributing this time (some restrictions & penalties applied).
  • If you are planning on withdrawing your RRSP under either LLP or HBP, consider delaying it to the new year to give yourself an extra year before the repayment required.
  • If you are making payments on your LLP or HBP, consider the advantage/disadvantage of missing or making that required payment for this year.
• TFSA: the contribution limit for 2018 is $5,500. If you have not yet made any contributions in the past, you can contribute up to $57,500 (some conditions applied).
  • If you are going to withdraw from your TFSA soon, consider doing so before the end of the year (instead of the beginning of next year). This withdrawn amount will be reinstated in your contribution room in the new year.
  • The contribution limit for 2019 is $6,000.
  • For Americans who reside in Canada, keep in mind that TFSA is not a tax-free account under IRS.

Click here to view more year-end tax planning for Entrepreneurs.

I trust that you find these highlights useful.
I would like to remind you that we offer income tax return and bookkeeping services.

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.