2018 is almost upon us as the year draws to a close. It’s time, once again, to take advantage of the many personal and business RRSP and tax-planning opportunities that are still available.

Contribute to Your RRSP

The most popular tax tool available to taxpayers is investing in a registered retirement saving plan (RRSP).

Contributions to RRSP’s are tax deductible and the income earned within the plan grows tax deferred until retirement. You can claim a contribution of up to 18% of 2016 earned income to a maximum of $26,010. Earned income is defined as income from employment, from business, net rental income from real estate, CPP disability pension, certain types of royalty, and spousal or child support payments that are included in your income.

The contribution limit may be subject to the year 2016 pension adjustment reversals. Pension adjustments reflect, in most cases, your employer’s contributions to a pension plan or actuarial commitments to such plans in the year 2016. The age limit for contributing to an RRSP is 71. The age limit for converting an RRSP to an annuity or RRIF is also 71.

Don’t over-contribute; a severe penalty will be the result.

Eligible Deductions & Credits

If you pay the following expenses by December 31, 2017 they will be eligible for the deductions of credits:

  • Childcare expenses
  • Moving expenses
  • Investment counsel fees
  • Deductible support payments
  • Political donations
  • Interest paid on loans used to purchase investments
  • Charitable donations
  • Accounting fees
  • Tuition fees
  • Union and professional dues
  • Medical expenses

Contact one our of offices for tax planning help, 250-744-3854.