I don't know about you, but I'm running around wondering how I'm going to balance getting presents for the family with making sure that my clients are taken care of with making sure that my own small business is tax optimized for the year. The Federal government has thrown some curve balls our way this year and you'd have to pretty much have been living in a cave, on a deserted island not to have heard something about it and be wondering whether or not it will effect you. We still don't really know what all the changes are going to be until the budget comes out and we still don't really know how everyone is going to be effected so instead of letting it ruin your holidays here's a couple of time tested and still true tax tips to maximize your after tax dollars for 2017.
1. Time your purchases. If you have a December year end, and you are going to make any significant purchases, do it BEFORE the year end. Not on Jan 1 or 2.
2. Make sure your books are up to date so that you can decide on a tax strategy before Jan 15th. Why Jan 15th? Because that's when your payroll remittances are likely due on any bonuses you will pay yourself for January. Use an online tax planner, like on taxtips.ca to estimate which way you pay less tax, with salary or dividends, or contact your accountant. But do it with enough time. Your lack of planning is not their emergency!
3. Look at your investment accounts if you have any, did you sell any shares? Redeem any mutual funds? If there were gains, do you have any loser stocks that you know will never ever come back? Sell them and offset your gains with the losses.
and here's a bonus tip for you.
4. If you're feeling generous, again, time your donations, make them before December 31.
Then relax and enjoy your eggnog, talk to your accountant in the new year about longer range more advanced tax strategies that can't be accomplished in a couple of weeks at the end of the year anyway to be effective. Oh, and chocolate never hurts either.
The holistic accountant