December Tax Planning
Now is the time finish up your tax planning for the year. Except for RRSPs December is your last chance to do any tax planning. Following are a few suggestions:
- If you are planning to make some charitable contributions, make them in December. If you wait till January you will have to wait another year to get the benefit of the tax credit.
- Contribute to you RESPs or RDSPs before the end of the year.
- Look at your stock portfolio. Are there any losers you want to get rid of or winners you want to cash out? You can carry back capital losses for 3 years or forward till used. December 23 is the last date to qualify for 2014.
- For the self-employed if you are planning purchasing new equipment early in the New Year, it may make sense to purchase it in December instead. You can deduct the same amount of Capital Cost Allowance (CCA) for 2014 if you bought it in January 2014 or if you buy it in December 2014. If you buy it in January 2015 you will have to wait another year to claim the CCA.