Before The End of The Year…

While the end of the year might still be months away, you should be thinking about strategies that could generate tax advantages or might simply be prudent.\

BY GARRY KEILLER, THE NAKAMUN GROUP, EDMONTON

Tax Loss Selling

If you have non-registered investments — not held in an RRSP, RRIF, TFSA, or RESP — that have lost value, selling them before the end of the year could trigger a capital loss. That loss could off set any capital gains you may have realized this year, or can be carried back to off set any taxable capital gains realized during the three previous years. Alternatively, you can carry forward those losses indefinitely.

TFSA Withdrawals

If you are planning to withdraw funds from your TFSA, do so before the end of the year. You can then re-contribute that amount in 2017. If you wait until January, you will not be allowed to re-contribute that amount until 2018, without incurring signifi cant over-contribution penalties.

RRSPs for Those Who Turn 71 in 2016

The RRSP contribution deadline for the 2016 tax year is March 1, 2017. However, if you turn 71 in 2016, you must make your contribution by December 31, 2016 and convert your RRSP to a registered retirement income fund (RRIF) or registered annuity by that date, as well.

Also By the End of the Year…

The following should also be completed before December 31:

  • Charitable donations
  • Medical expenses that you claim on a calendar year basis
  • Investment counsel/program fees
  • Interest and other investment expenses
  • Political contributions
  • Deductible legal fees and interest on student loans

If you require assistance to implement any of the above strategies, please contact your Nakamun Advisor soon.

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