Several tax deadlines come early this year: BMO

Dec. 31 is the last day to contribute to some registered plans have

Several tax deadlines come early this year: BMO

As the New Year approaches, BMO Financial Group reminded Canadians today that December 31st marks the last day to contribute to certain registered plans. It is also a key deadline for Canadians who want to take advantage of tax deductions.

Tina Di Vito, Head, BMO Retirement Institute, cautioned Canadians to act now to get their contributions and tax planning in order before December 31. Waiting until the New Year to start thinking about taxes is often too late, as many of the cut-off dates for tax deductions and credits fall at the end of the calendar year.

“With all the distractions around this time of the year, it’s easy to forget about key end-of-year personal finance deadlines. With a little bit of planning and help from a financial or tax professional, making arrangements now can make the New Year less stressful,” said Ms. Di Vito.

Tina Di Vito Reminds Canadians of the Following Year-End Deadlines:

Tax-loss Selling – Deadline: December 23

—  If you have investments that have depreciated in value, consider selling

these investments before year-end to offset capital gains realized

earlier in the year to reduce your overall tax bill. It is important to

ensure that a sale makes sense from an investment perspective, since

stocks sold at a loss cannot be repurchased until at least 30 days after

sale to be effective. Be sure to work with your BMO advisor when

implementing this strategy.

 

RDSP Contributions for Grants and Bonds – Deadline: December 31(i)

—  Designed for individuals with disabilities, the Registered Disability

Savings Plan (RDSP) combines the advantages of tax deferred investment

growth with the opportunity to receive government subsidies. December 31

is the annual contribution deadline for receiving Grants and Bonds from

the government.

—  December 31 is also the last day for Grants and Bond eligibility for

those beneficiaries who are turning 49 years of age, and is the last day

contributions are permitted to the plan for those beneficiaries who are

turning 59 years of age.

—  For more information on the RDSP, please visit:

http://www.bmo.com/home/personal/banking/investments/disability-

savings/registered-dsp

 

Charitable Donations & Other Tax Credits/Deductions – Deadline: December 31(i)

—  Ensure all charitable donations are made before December 31 in order to

receive a tax receipt for 2011.

—  Instead of donating cash to charities, investors could consider donating

appreciated publicly-traded securities. This strategy can provide a tax

credit equal to the value of the securities donated, while also

potentially eliminating the capital gains tax otherwise payable on the

gain accrued on the security.

—  December 31 is also the final payment date for a 2011 tax deduction or

credit for expenses such as childcare, medical costs, tuition and the

recently-introduced children’s fitness and arts tax credits.

 

TFSA Withdrawals – Deadline: December 31(i)

—  If you are planning a withdrawal from your Tax-Free Savings Account

(TFSA), consider making this withdrawal in December instead of waiting

until the New Year; a withdrawal would result in additional TFSA

contribution room in the following year.

—  For more information on the TFSA, please visit:

http://www.bmo.com/home/personal/banking/investments/tax-free/tfsa

 

RRSP Contributions for those turning 71 – Deadline: December 31(i)

—  Individuals who turned 71 years of age in 2011 must collapse their RRSP

by the end of the year. Such individuals should consider a final RRSP

contribution, assuming any unused contribution room exists. Seniors

and/or retirees should also take note of some of the important tax

changes in recent years (such as pension income splitting, the

amendments to the Canada Pension Plan and the introduction of the TFSA)

that may affect their tax planning.

—  For more information, please visit:

http://www.bmo.com/home/personal/banking/investments/retirement-

savings/retirement-planning/what-stage-are-you-in/my-working-years

 

Surrey North Delta Leader

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Deb Jack was named Surrey’s Good Citizen of the Year in 2012. (File photo)
Environmentalists’ delegation takes aim at Bear Creek Park road project

‘Bear Creek Park is ours – a natural heritage,’ Deb Jack says

Surrey-raised rapper Merkules outside his old Green Timbers-area house. Its looming demolition triggers some memories for the musician. (Photo: Tom Zillich)
VIDEO: Rapper Merkules visits old Surrey home one final time before its demolition

‘It’s weird seeing the place gutted like this,’ he says of the Green Timbers-area rancher

In a letter to Fraser Health president and CEO Dr. Victoria Lee dated May 11, Delta Mayor George Harvie confirmed the city’s interest in acquiring a head lease for the Harold and Veronica Savage Centre for Supportive Care, with the intention of subletting it to the recently-formed Heron Hospice Society of Delta. (The Canadian Press photo)
Mayor confirms Delta’s interest in leasing Centre for Supportive Care

Harvie says city intends to sublet the facility to recently-formed Heron Hospice Society of Delta

The City of Surrey has moved a step closer to its single-use plastics and styrofoam ban, approving a communication and education plan for businesses. (File photo)
Surrey moves forward with single-use plastics ban, anticipated to take effect in November

‘Communication and education plan’ to prepare businesses approved

Surrey-based entrepreneur Ekam Panesar, 19, says he’s ready to take on the big delivery apps with his Dishpal App. (Zoom meeting photo)
Surrey entrepreneur, 19, delivers Dishpal as alternative to ‘big’ food/grocery apps

Ekam Panesar got the idea to develop app as a 16-year-old enjoying a summertime meal with his father

Surrey-raised rapper Merkules outside his old Green Timbers-area house. Its looming demolition triggers some memories for the musician. (Photo: Tom Zillich)
VIDEO: Rapper Merkules visits old Surrey home one final time before its demolition

‘It’s weird seeing the place gutted like this,’ he says of the Green Timbers-area rancher

Keith MacIntyre - BC Libertarian
Penticton’s Keith MacIntyre new leader of the B.C. Libertarian Party

The Penticton businessman was voted in by members of the party on May 8

RCMP are searching for Philip Toner, who is a 'person of interest' in the investigation of a suspicious death in Kootenay National Park last week. Photo courtesy BC RCMP.
Man sought in suspicious Kootenay death found in Lake Country

Philip Toner is a person of interest in the death of Brenda Ware

Vernon North Okanagan RCMP reported to 287 mental health calls between Jan. 1, 2021, and May 1. (Black Press files)
‘It’s not the police’s responsibility to deal with mental health calls’: Vernon RCMP

RCMP remind public to take care of mental health and well-being, while better solutions are sought

Thompson Rivers University campus is in Kamloops, B.C. (KTW file photo)
Thompson Rivers the 1st B.C. university to supply free menstrual products

The university will offer the products this September

Fraser Health is using ‘targeted’ vaccination clinics in high-risk areas of the Lower Mainland. (Fraser Health photo)
B.C.’s COVID-19 decrease continues, 515 new cases Tuesday

426 seriously ill people in hospital, up from 415 Monday

The site of Sunfest, Laketown Ranch, will be open for camping this summer. (Citizen file)
Sunfest country music bash won’t be shining on B.C. in 2021

Annual Vancouver Island Festival cancelled due to COVID-19, along with Laketown Shakedown

Tla-o-qui-aht First Nation elected chief councillor Moses Martin, who was also Chantel Moore’s grandfather, speaks to media in Port Alberni on Aug. 16, 2020, during a visit from NDP leader Jagmeet Singh following the police shooting of Chantel Moore. (Elena Rardon photo)
Mother of 2 shot by police in critical condition, says B.C. First Nation chief

Community ‘devastated’ by third member of 1,150-person Vancouver Island nation shot in less than a year

B.C. Agriculture Minister Lana Popham promotes the government’s BuyBC food program in 2019. (B.C. government)
Money running out for fresh fruit, vegetables, milk in B.C. schools

‘Looking at ways to support this type of program,’ minister says

Most Read