Year-End Tax Planning : Essential Tips for Businesses and Individuals in Central Ontario - Keenans Accounting Service

As the vibrant colours of fall paint Central Ontario, it’s also time for businesses and individuals to focus on year-end tax planning. October is the perfect month to begin preparing your finances to minimize liabilities and maximize returns. This guide will provide you with essential tips to effectively navigate the complexities of the Canadian tax system and make informed decisions.

1. Maximize Deductions:

   • For Businesses: Review all possible deductions, including business expenses, home office costs, and depreciation on new assets.
   • For Individuals: Consider common deductions like RRSP contributions, charitable donations, and medical expenses.

 

1. Utilize Tax Credits:

   • Explore various tax credits available, such as the Canada Child Benefit for families or the Scientific Research and Experimental Development (SR&ED) tax credit for businesses engaged in research.

 

1. Defer Income:

   • If possible, defer income to the next fiscal year to reduce the current year’s taxable income, especially if you expect to be in a lower tax bracket next year.

 

1. Clear Up Outstanding Payables:

   • Paying off business expenses before the year-end can increase your expense claims, thus reducing taxable income.

 

1. Make Charitable Contributions:

   • Donations made by December 31 can be claimed on this year’s tax return. Ensure to keep all donation receipts for record-keeping.

 

1. Review Investment Portfolio:

   • Assess capital gains and losses and consider selling off underperforming assets to offset gains with losses, a common practice known as tax-loss harvesting.

 

1. Consult a Professional:

   • Tax laws are complex and continually changing. Consulting with a tax professional can provide you with personalized advice and ensure compliance with the latest tax regulations.

 

Effective year-end tax planning is a crucial strategy for optimizing your financial health. By taking proactive steps now, you can ensure a smoother tax season and potentially significant financial benefits.

 

Don’t navigate the complexities of year-end tax planning alone. Keenans Accounting Service is here to assist you every step of the way. Contact us today at (705) 526-7628 or visit our website at https://keenansaccounting.ca/ to set up a consultation. Let us help you maximize your financial opportunities as we approach the end of the year.