Toronto, December 1, 2004 -
It may seem too early to be thinking and planning for spring, but December is a critical month when it comes to smart financial planning. With year-end just around the corner, there are now many opportunities to take advantage of that will pay off later at tax time.
Here are few year-end tax-saving tips from Certified Financial Planner® (CFP®) professionals, courtesy of FPSC (Financial Planners Standards Council).
Pay all professional dues, accounting fees, deductible legal fees and investment counsel fees before year-end so you can claim them as deductions. Don't forget alimony payments, charitable donations and interest paid on borrowed money if applicable.
If you turned 69 in 2004, you must make your final RRSP contribution by December 31.
Consider selling securities within your non-registered investment portfolio that have accrued capital losses to offset current capital gains. The last day for settling trades on Canadian stock exchanges is December 28. Conversely, consider holding off selling any securities with accrued capital gains until after the New Year.
If you plan to make any Registered Education Savings Plan contributions, do so by December 31. The annual contribution limit is $4,000 per child. Likewise, pay all child-care expenses by year-end. The annual deduction limit is $7,000 for children under age seven and $4,000 for ages 7-16.
Don't wait until the March 1 RRSP deadline to review your annual investments. Do this in December so you have time to take advantage of tax-smart investing strategies before the year-end deadline for income tax purposes.
CARE TO HEAR MORE? Financial Planners Standards Council can connect you with CFP® (Certified Financial Planner®) professionals who are experts in all facets of financial planning issues. Trained and licensed to provide financial planning advice, CFP professionals can answer questions on topics related to year-end and year-round tax saving strategies, retirement, investment, insurance, estate planning, education savings, budgeting and more. Many offer additional areas of specialization including financial planning for life transition, divorce settlements, gay unions, charitable giving, elder care, alternative investing - and other topics.
To arrange an interview, contact: Eileen Chadnick/Chadnick Communications for Financial Planners Standards Council at 416.631.7437 or e-mail eileen@chadnick.com.
For background information on FPSC and the CFP designation, access our online Media Kit.
CFP®, CERTIFIED FINANCIAL PLANNER® and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planners Standards Council is the marks licensing authority for the CFP marks in Canada, through agreement with FPSB.
are certification marks