Twelve days of tax tips – Day 12
Grant Thornton LLP wants to remind Canadian taxpayers and businesses that now is the time to employ end-of-year tax planning strategies that can help reduce the overall tax burden.
On the twelfth day of tax tips, trades might want to top up their tools. Employed trades people might be entitled to a tax deduction of up to $500 for new tools (except things like cell phones and computers). The deduction applies to purchases that total in excess of $1,065, so check your receipts. If you haven’t purchased at least $1,565 in tools this year, try to max out the deduction before December 31.
Other days of tax tips:
Day 1: Switching year-end bonuses into dividends
Day 2: Maximizing the small business deduction
Day 3: Accelerating your business expenses into this year’s higher tax rates
Day 4: Selling money-losing investments to offset capital gains
Day 5: Deferring reporting interest income on investments
Day 6: Deferring tax when selling your business
Day 7: Loaning money to your spouse or common-law partner to split the income
Day 8: Deferring your RRSP contribution
Day 9: Paying some expenses in 2011 to maximize individual tax benefits
Day 10: Taking care of your estate property if you own property outside of Canada
Day 11: Reducing the taxable benefit on your company car
