Tax items to consider before the year ends

Here’s the bonus round, on ways to reduce your income taxes for 2017. Last week we reminded you about making donations, harvesting capital losses to avoid taxable capital gains and making any required 2017 TFSA withdrawals prior to Dec. 31. On the T FSA, I should stress that I am not recommending withdrawals. My point was simply that if you plan to take money out to spend, make the withdrawal in December, so that you can then recontribute these amounts in 2018, rather than having to wait until 2019. There are several other items you may want to consider prior to year end. Dec. 31 is the deadline to collect government grants on 2017 contributions to Registered Education Savings Plans (RESPs) and Registered Disability Savings Plans (RDSPs). Pay only 27¢ for articles you wish to read. Pay only 27¢ for articles you wish to read. Here’s the bonus round, on ways to reduce your income taxes for 2017. Last week we reminded you about making donations, harvesting capital losses to avoid taxable capital gains and making any required 2017 TFSA withdrawals prior to Dec. 31. On the TFSA, I should stress that I am not recommending withdrawals. My point was simply that if you plan to take money out to spend, make the withdrawal in December, so that you can then recontribute these amounts in 2018, rather than having to wait until 2019. There are several other items you may want to consider prior to year end. Dec. 31 is the deadline to collect government grants on 2017 contributions to Registered Education Savings Plans (RESPs) and Registered Disability Savings Plans (RDSPs). The RDSP is only for people who qualify for the Disability Tax Credit, and the RESP for children under the age of 17 (or under 18, if adequate past contributions have been made). ● repayments to your corporation that might otherwise become taxable; and, You can also use Dec. 31 as a target to update your future vision, and set specific goals for the coming year. Since I am very slow at this, I have to start at the beginning of December. (Let me suggest this weekend for you, before the holiday rush.) Note that the child fitness and artistic activity credits were cancelled by the current government. These were notionally replaced by the Canada Child Benefit, which applies to children under 18 living with you. —winnipegfreepress.com