It’s the most wonderful time of the year! That’s right, time to start your year-end tax planning so any strategies that need to be implemented by Dec. 31 to be effective can be successfully launched.
Payments that must be made by Dec. 31
Dec. 31 is the last day to make a donation and get a tax receipt for 2012. Most major charities and foundations offer online donation tools on their websites where an electronic tax receipt is generated and emailed to you instantly. Note that a private member’s bill currently before Parliament, if passed, would extend the charitable donation deadline until the end of February, but it’s unlikely to be law in time for the 2012 tax filing year.
There are various expenses you must pay before Dec. 31 to claim a tax deduction or credit in 2012. These include such investment-related expenses as interest paid on money borrowed for non-registered investing, investment counselling fees for non-RRSP/RRIF/TFSA accounts and safety deposit box rental fees.
You may also wish to consider accelerating certain expenses and make payment by Dec. 31 to claim a tax deduction or credit earlier. For example, if you plan to register your kids in swimming lessons or ballet classes for the upcoming winter semester, if you pay for them before year end, those expenses can be claimed toward the 2012 children’s fitness or arts credit.
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