Making a list, checking it twice … Don’t forget the personal tax to do list.

December is a busy month, but make sure to take the time to do some tax and financial planning before the year is done.

  • Make charitable donations before December 31st
  • Make RESP contributions for children or grandchildren
  • Top up your TFSA (tax free savings account) if you haven’t already made your maximum yearly contribution of $5,000
  • Review your investment portfolio with your investment advisor, to ensure no gains or losses need to be triggered.  Your advisor may want to do some tax-loss selling to recover capital gains from the last three years.
  • Review your income and expenses year-to-date, and look at your RRSP contributions.
  •  If you turned 71 in 2012 and still have RRSP contribution room, than make your contribution before the end of the year.
  • Start planning for the new year – budget for those big ticket items you’ve been wanting for your business (i.e. new computer or printer), and if you can, purchase them before the end of 2012, so that the half-year depreciation deduction occurs in 2012.