Year end tax tips

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Year End Tax Tips

Want to pay less Tax in 2014?


Are you in 1%?

• While 99% of us are busy shopping, eating, drinking and complaining about the sorry state of our finances, 1% of people (the wealthy ones) are meeting with their tax advisors and planning all out, how to minimize their taxes and maximize their after tax income. You see, in Canada for every $100 taxable income reduction by tax planning you save almost $44 in taxes. You can easily pay off your holiday shopping bill with just few simple year end tax saving strategy.


Year end?

• Tax planning is a year around activity. But if you ignored it, all year long, this last few days of the year, where you must take action to minimize your 2014 tax.


So, here are some ideas.

If you want to pay less Tax in 2014?


Donation

Take advantage of the First Time Donor’s SuperCredit, which is available from 2013 to 2017.Ordinarily the donation tax credit would be equal tojust 15% of your charitable gift for donations ofless than $200, but if you’re a first-time donor, youcan take advantage of the Super Credit to get atax credit of 40%. In addition, the regular tax creditrate for donations of $200 to $1,000 is 29%, butwith the Super Credit, the rate jumps to 54%.


RRSP

RRSP is not a tax saving strategy. It is a Tax

Deferral strategy. If you are in a higher tax

rate, contributing to your RRSP will lower

your income tax rate and your net tax

payable for 2014.


TFSA and RESP

TFSA and RESP do not reduce your tax. But

it sure gives you some tax free income in

coming years. Review your TFSA

investment and if your money is growing tax

free, feel free to top up your TFSA room.

Don’t let free money fall through your hand

for your child’s education. Make sure you have

RESP contribution for all your dependent children.


Medical Expense

Most Canadians ignore the tax benefit of

medical expenses. Many of the medical and

health related expenses can be claimed as

medical expenses for tax credit. You must

take advantage of this. Get an annual

medical expense statement from your

medical and health service provider.


Capital Gains

Sell off investment to realize capital gains, if

you have lower income in 2014 and unused

capital losses from prior years. The gain

could be almost tax free if you have unused

capital losses.


Don’t Overpay Tax

If you paid installment taxes in 2014, make

sure you don’t over pay your annual tax

2014. Adjust your last installment tax

payment, closer to your actual 2014 tax bill.


Review Payroll Deduction

If you are an employee, its time to review

your source withdrawing. Submit a new

TD1, if you had changes in your family.


Child Care Claim

Keep a record of all Child Care expenses to claim Child Care Expense Credit.


Claim Interest Expense

Did you borrow money to invest in 2014?

Don’t forget to claim the interest of the loan.

Safety deposit box for investment are not tax

deductible from 2014.


Payroll Tax

If you are in a business, plan for 2015 hiring

and firing of your employees.


Talk to a Tax Expert

• Consult with your trusted tax advisor.

• Not your Brother in Law, Friend or Accountant (unless tax accountant or lawyer).

• Tax is the largest expense of your life. Why don’t plan it with an expert tax advisor.


Pay Less Tax

• Legally manage your tax and pay the least amount of tax in 2014.


We are here to help

• We are CANADA and USA Tax Consultant based in Vancouver, BC.

• Consulting with us, may change the rest of your financial life.

• Contact: 604-764-7864

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Year end tax tips