Let's review some common year-end planning tips! Act now before it too late!
1. Contribute to a Registered Retirement Savings Plan.
Yes, you have March 1st, 2019 but why not get started now. If you turned 71 in 2018, you will need to convert your RRSP to a RRIF. This is a great opportunity to do one last RRSP contribution and/overcontribution.
2. Pull money out from your
RRSP or RRIF in this tax year.
If you are 65, consider making a withdrawal from your RRIF and taking advantage of the $2,000 federal pension income amount. It may also
at have qualified for the DTC since 2008 may actually lose entitlements after 2018
6.Make any charitable donations. Charitable donations must be done by year-end to qualify for 2018 taxes. Consider this, if you like to donate but have lower income, why not donate in your adult child’s name. If they are not retired, their income could be higher, and they benefit more from the donation tax credit. Investors with non-registered money with a capital gain could also consider donating the investment in-kind. It would give you donation worth the value of the investment, and you won't have to pay capital gains on the investment.
7.Make a Tax-Free Savings Account withdrawal. If you withdraw funds from a TFSA, an equivalent amount of TFSA room with be re-instated in the following calendar year. The exciting news is the new contribution room for 2019 is $6000. That makes the maximum contribution now $63,500…that’s a lot of tax-sheltered growth.