Financial Year-End Checklist - Kerr Financial
Financial Planning
Financial Year-End Checklist
Category: Financial Planning, Investment Management Tags: integrated wealth management, investment management, Tax, wealth management

Once school starts back times seems to fly faster and suddenly it’s the end of the year and we are in the throes of the holiday season!  Before you close off the year financially, consider these tax efficient  opportunities:

RRSP: Final contribution date is March 2, 2020 to deduct on your 2019 return.

RESP: Each child under 17 is eligible for government grants if you contribute up to $2,500 annually

TFSA: Annual maximum is $6,000.

Capital gain/loss selling. Decide if you want to trigger losses to offset against gains realized year to date. Don’t forget about the superficial loss rules (once sold, you must not repurchase the position for 30 days).

Capital gains: These can be deferred, based on your expected marginal tax rate. If you anticipate being at a lower tax rate in 2020, you can defer realizing your capital gains to January.

Turning 71 this year? If so, your RRSP must be matured. You can make a final RRSP contribution, if you have room this year!

Maximize your charitable donations: Don’t forget that if you donate shares in-kind, the capital gain on the donated shares is not taxed in addition to receiving a donation credit.

Instalment payments: Ensure you are up to date. There is some flexibility with this depending on what you expect your 2020 year to look like.

Interest payable on family loans: Interest is due to be paid by January 30th, 2020

Year- end expenses: If you want to deduct eligible expenses in 2019, you must pay them before year end. Examples are interest expenses, investment counsel fees, carrying charges etc.

Capital gains in a trust: If you have an inter-vivos trust in place and the terms of the trust allow, look at your dependent children’s tax rate.  If it’s low, consider triggering capital gains in the trust and allocating income to children.

There’s a lot on this list!  Check it once, check it twice and work with your advisor to ensure it’s right!

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