2012 – 2013 TAX PLANNING STRATEGIES to minimize your taxes, maximize your wealth

December 2012

    

The following information is intended to introduce you to some useful tax and financial planning strategies to help you better understand how you can minimize your taxes and maximize your wealth. 

As you may know, financial planning is time sensitive and many tax strategies are driven by deadlines. While the following list is not exhaustive, here are some timely action items to be taken and payments to be made in order to be considered in your 2012 tax return. 



Prior to December 31, 2012 

  • Utilize realized capital losses 
  • Transfer unrealized capital losses from a spouse 
  • Establish a low interest rate loan to a family member
  • Pay all qualifying deductible expenses, e.g. carrying charges, investment management fees, loan interest, alimony/maintenance payments, tuition fees, moving expenses, child care expenses, professional fees 
  • Consider the purchase of flow-through shares 
  • If you sold a vacation property this year, consider claiming it as your primary residence 
  • If you are age 71 this year, you must convert your RRSP to a RRIF. Consider the following:
    • use your younger spouse’s age for minimum payment calculations 
    • consider an advance contribution to your RRSP for earned income from this year
  • Contribute to your TFSA 
  • Contribute to your child’s RESP 
  • Make a political contribution 
  • Donate to charity 
  • For corporations: 
    • pay reasonable salaries to family members 
    • accrue salary and bonuses before year end (payment must be made within 179 days of year end)

Prior to January 30, 2013

  • Pay interest on low interest rate loans to family members

Prior to March 1, 2013

  • Contribute to your RRSP or Spousal RRSP (2012 RRSP contribution limit is 18% of earned income to a maximum of $22,970)
    

We recommend you discuss these strategies with your professional investment, tax and legal advisors prior to implementation to ensure they fit within your overall wealth plan. To receive our complimentary 2012-2013 Tax Planning reports for individuals and /or corporations, please contact your Richardson GMP Investment Advisor. 

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