##  [ Bil Ioannidis Financial Insights Weekly - Business or Personal ](/articles/bil-ioannidis-financial-insights-weekly-business-or-personal) 

  Submitted by [Bil Ioannidis BA. CSA.](/whois/4145) on Friday, November 27, 2009 - 10:25 

 **Beat the tax with these year-end tax tips**

Tax-planning should be a year round activity but even if you’ve been otherwise occupied this year, you still have time to save money on your 2009 taxes by using strategies like these.

**Be deadline savvy** File your tax return and make tax payments on time to avoid penalties and interest. Payments that qualify for tax credits and deductions should be made by December 31.

**Deduct to save** Take full advantage of all tax deductions including the most important – your Registered Retirement Savings Plan (RRSP) deduction. Be sure to fill up all your RRSP contribution room.

**Give yourself all the credit** Make full use of tax credits to reduce your tax bill by:

- Pooling medical expenses on the tax return of the lower earning spouse.
- Pooling charitable donations or carrying them forward for up to five years to surpass the $200 threshold that increases your credit.
- Using the spousal credit for the higher-earning spouse.
- Transferring the age, disability, tuition and/or education credits to a spouse or supporting relative when not used by a dependent.
- Don’t forget the first time homebuyer, home renovations and moving expenses credits.

**Split to save** Income-split by sharing pension income with a spouse, through a spousal RRSP or by paying a salary to (eligible) family members.

**Be RRSP savvy** If you’re turning 71 this year, you must wind up your RRSP and need to decide whether to take the cash (poor choice) or transfer the funds to investments held within a Registered Retirement Income Fund (RRIF) or annuity (much better choices). If you have earned income, you can continue making contributions to a spousal plan until your spouse reaches age 71.

**Save tax-free** Make up to a $5,000 contribution to a Tax-Free Savings Account (TFSA). The contribution isn’t tax deductible but money and interest inside your TFSA is tax-free and so are withdrawals that you can make at any time for any purpose. Amounts withdrawn are added to your TFSA contribution room for the following year.

**Make down investments pay off** Plan to sell money-losing investments by the December 31 settlement date, which creates capital losses than can offset capital gains.

**Buy now to save** If you’re self-employed and claiming the capital cost allowance (CCA) on depreciable assets, buy them before year end to speed up tax write-offs.

**Move to save** If you’re moving to a province with a lower tax rate, do it before December 31 and you’ll pay the lower rate for the full year. If you’re moving to a province with a higher tax rate, try to delay until 2010.

And here’s the best tax-saving tip of all: Talk to your advisor before year-end to be certain you make the most of the other tax-reduction strategies available to you.

This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), presents general information only and is not a solicitation to buy or sell any investments. Contact a financial advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant.



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