Edmonton Small Business Accountant Year End Tax Tips
Posted On: 29/11/16 - 0
Special Tax Edition
2017 is almost upon us as the year draws to a close. It’s time, once again, to take advantage of the many personal and business tax-planning opportunities that are still available. This edition of the SmallBiz Builder provides numerous ways to save on taxes for 2016 and beyond. From all of us at Padgett Business Services, we wish you a happy new year.
Contribute to Your RRSP
The most popular tax tool available to taxpayers is investing in a registered retirement saving plan (RRSP). Contributions to RRSP’s are tax deductible and the income earned within the plan grows tax deferred until retirement. You can claim a contribution of up to 18% of 2015 earned income to a maximum of $25,370. Earned income is defined as income from employment, from business, net rental income from real estate, CPP disability pension, certain types of royalty, and spousal or child support payments that are included in your income. The contribution limit may be subject to the year 2015 pension adjustment reversals. Pension adjustments reflect, in most cases, your employer’s contributions to a pension plan or actuarial commitments to such plans in the year 2015. The age limit for contributing to an RRSP is 71. The age limit for converting an RRSP to an annuity or RRIF is also 71. Don’t over-contribute; a severe penalty will be the result.
Eligible Deductions & Credits
If you pay the following expenses by December 31, 2016 they will be eligible for the deductions of credits: · Childcare expenses · Political donations · Tuition fees · Deductible support payments · Accounting fees · Children’s Fitness Expenses · Charitable donations · Medical expenses · Children’s artistic, cultural, · Union and professional dues · Investment counsel fees recreational or · Moving expenses · Interest paid on loans used to purchase investments developmental fees