TAX TIPS

Maximize your RRSP Contribution
Amounts contributed to your RRSP are deductible from income. As well, tax is deferred on all amounts earned inside your RRSP until you begin receiving an RRSP retirement income..

Taxation Services

• Individual tax preparation
• Self-employed tax preparation
• Corporate Income Tax Preparation
• Tax preplanning
• Electronic Filing

Accounting & Bookkeeping for Small Business

• Unaudited Financial statements
• Computerized bookkeeping
• HST remittances
• Payroll and WCB services
• T4 and T5 slips and summaries
• Budgeting and cash flow analysis

Computer Training

• Accounting software training and ongoing support
• Microsoft Office software training
• Internet and email applications
• Database applications
• Tax software training

Medical Expenses
Did you know that your medical plan costs deducted from your earnings are part of your medical expenses. As long as all of your medical expenses are more than your 3% of net income you have a deduction on your income tax return. If married you may claim all of the families' medical and dental expenses together on one income tax return for the best deduction. In most cases the deduction is best suited on the lower income as the 3% is lower but not always. .

Make your interest expense tax-deductible
If you must borrow, try to borrow for investment or business purposes before you borrow for personal reasons. The interest paid on these loans is fully deductible, while interest on personal borrowing is not.

Split income with your spouse
Most couples will pay less tax overall if each partner earns some of the family's investment income, rather than one partner earning it all.

Split income with your children
You can split income with your children by acquiring capital property with a low yield but high capital gains potential in the names of your children.

Realize losses to offset gains
You can split pension income with your spouse to help to reduce your taxes. This works well when there is a difference in the income brackets between two spouses. Old Age Security does not qualify for the pension splitting and you would contact Canada Pension to do the pension split with your spouse as this is separate from the pension income deduction on the income tax return .

Reduce net income to avoid OAS claw-back
Defer income to a future year or maximize your deductions this year, so that your net income is reduced and the Old Age Security claw-back is minimized.

Defer tax with the RRIF minimum income option
You do not have to withdraw from a RRIF until age 71. At that time you will have to take out a minimum amount each year and will not be able to make any contributions to the plan.

Transfer gains to the next generation with a estate freeze
Whether you own a business or substantial investment assets, an estate freeze can minimize your future tax liability.

Safety Deposit Box
Deduct the cost of the safety deposit box on the Schedule 4.

Capitalize the $500,000 capital gains exemption
If you own and operate a business that has increased in value, plan on claiming this exemption as soon as possible. You do not have to sell your business to make this claim.

Tax Free Savings Account (TFSA)
Introduced in 2008, the TFSA is a great opportunity to grow an investment tax free for your retirement. Although you do not receive a tax deduction you are able to withdraw the funds out of your account with no tax implications. You may invest up to $5000 each year and this amount will accumulate and carry forward if not used in the current tax year.

Registered Disability Savings Plan (RDSP)
Allows for the rolloever of a deceased individual's Retirement Savings Plan (RSP) proceeds into the RDSP of a financially dependent infirm child or grandchild. It also allows for a 10-year carry forward of Canada Disability Savings Grant and Canada Disability Savings Bond entitlements beginning in 2011.

First-Time Home Buyer's Tax Credit
On the Schedule 1 you can claim the home buyers deduction if you purchase a new home. It is a non- refundable credit of $5000 and there is one claim per family with tax savings of $750.

Capital Losses
If you have realized capital gains in the year and have accrued losses on other investments, consider selling your losses before year-end.

Graduate Retention Rebate
If you graduate from a University ($2500 non-refundable Credit) or a College ($1250 non-refundable Credit) available that reduces your provincial taxes. If you are not able to use the deduction in a given year you may carry the deduction forward.

These are just a few of the many deductions available to individual tax payers so consult your income tax consultant today to find out more about these deductions and whether or not you qualify for any of them.

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