{"id":462,"date":"2014-01-06T21:15:33","date_gmt":"2014-01-06T21:15:33","guid":{"rendered":"http:\/\/andrewwbradley.ca\/Blog\/?p=462"},"modified":"2014-01-06T21:15:33","modified_gmt":"2014-01-06T21:15:33","slug":"canadian-tax-tips-facts-need-know-2013","status":"publish","type":"post","link":"https:\/\/blog.andrewwbradley.ca\/index.php\/2014\/01\/06\/canadian-tax-tips-facts-need-know-2013\/","title":{"rendered":"Canadian tax tips and facts you need to know for 2013"},"content":{"rendered":"

\"Canadian<\/a>With Christmas over and the new year here, we can start to get excited for tax filling time! Here are some tips, facts and links to help you get ready for filling your 2013 income taxes and some tips to consider for 2014. Don’t forget to tune in to Ottawa Experts on January 13th at 8:30 pm on Rogers 22 where my guests and \u00a0I will be sharing tips and strategies to reduce what you owe and answering your income tax questions live.
\nThings to consider before December 31st:
\nC<\/strong>ontribute to a tax-free savings account<\/strong>(TSFA)<\/strong>. You can make a total of $5,500 TFSA <\/a>contributions for 2013, and if you haven\u2019t contributed before, you can contribute up to $25,500 before the end of the year. You can also contribute to your spouses account without attracting the attribution rules.
\nRESPs<\/b>. You can make registered education savings plan contributions before the end of the year. With a contribution of $2,500 per child under age 18, the federal government will contribute a grant of $500, and if you have prior non-contributory years, the annual grant can be as much as $1,000. You can watch this video I made about RESP’s and how they work.<\/a>
\nContribute to your RRSP<\/strong>. The deadline for making deductible 2013 RRSP contributions is March 3, 2014. \u00a0If \u00a0you turned 71 in 2013, makes sure you make your final RRSP contribution no later than December 31 (not 60 days after the end of the year). If you wold like to make the maximum contribution for the year or don’t have the cash now, check out this video on RRSP loans<\/a>.
\nP<\/strong>ay any<\/strong>\u00a0tax-deductible or tax-creditable expenses<\/strong>. A variety of expenses can only be claimed as deductions in a tax return if the amounts are paid by the end of the calendar year. That goes for interest, investment counsel\/management fees, professional dues, spousal support and child-care costs. \u00a0Political contributions, medical expenses, child fitness and arts program costs, tuition fees and transit pass costs that give rise to tax credits must also be paid in the year in order to be creditable.
\nR<\/strong>eview your investment portfolio<\/strong>.\u00a0<\/strong>You may want to sell securities that have lost money to reduce capital gains realized earlier in the year. If the losses realized exceed gains realized earlier in the year, they can be carried back and claimed against net gains in the preceding three years, and you should receive the related tax refund.
\nM<\/strong>ake capital acquisitions for business<\/strong>.\u00a0<\/strong>Self-employed individuals and unincorporated business owners expecting to make capital purchases for their business should consider buying before year end to get a depreciation deduction for 2013.
\nDonate to Charity.<\/strong> You have until Dec 31 to make your charitable donations in order for it to count under the 2014 tax year. Also when you file your taxes next year, make sure you file all the donations under one person. Here is an article on how to use a life insurance policy for a charitable donation.<\/a>
\nOrganize your Paper Work!<\/strong>\u00a0If you like to stay on top with organizing your tax paperwork, it\u2019s soon time to separate your 2013 receipts\/paperwork from your upcoming 2014. What I like do is buy a file folder with labeled dividers and through out the year put all tax paperwork and receipts into their sections. \u00a0This comes in handy when filing income taxes before the income tax deadline in April.
\nR<\/strong>emember to keep receipts.\u00a0<\/strong>Although you are not required to include most receipts when filing, CRA randomly requests receipts as part of its post-assessment review.<\/span>
\nCredits and deductions to remember for 2013<\/strong><\/p>\n