Year End Tax Tips
Posted On: 29/11/16 - 0

Year End Tax Tips

Special Tax Blog

2017 is almost upon us. It’s time again, to take advantage of the many personal and business tax-planning opportunities that are still available. This year end tax tips article provides numerous ways to save on taxes for 2016 and beyond. From all of us at Padgett Business Services N.W., we wish you a Happy New Year!

Contributing To Your RRSP

The most popular tax tip available to taxpayers is investing in a RRSP. Contributions to your registered retirement savings plan (RRSP’s) are tax deductible and the income earned within the plan grows tax deferred until retirement. It’s a great way to save for retirement and get the tax benefits each year you contribute. 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.

Age Limit To RRSP Contributions

The age limit for contributing to an RRSP is 71 years of age. The age limit for converting an RRSP to an annuity or RRIF is also 71. Be very mindful of your contribution limits. Over-contributions can trigger a severe penalty.  When you get your tax return prepared, your accountant will be able to advise you on your RRSP contribution limits.

Eligible Deductions &  Tax Credits

If you pay the following expenses by December 31, 2016 they will be eligible for the deductions of tax credits.· Childcare and  child fitness expenses. Political and charitable donations. Tuition and accounting fees. Deductible support payments. Children’s recreational or cultural fees. Union and professional dues. Investment counsel fees. Moving and medical expenses. And finally, interest paid on loans used to purchase investments developmental fees.

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