Year End Tax Planning III

the Lazer Grant Tax TeamBlog, Consulting, Tax, Tax Credit

Registered Retirement Savings Plan contributions to be deductible for 2015 do not need to be made by December 31, 2015.  They will be deductible for 2015 if they are made by February 29, 2016.  There is an exception, however.  If you turned 71 in 2015, you need to make your RRSP contribution before the end of the year.

Purchasing equipment or other capital assets have a different twist.  Unlike other expenditures we have discussed, the equipment does not have to be paid for by the end of the year.  The equipment, however, must be in use prior to December 31 in order for the asset to be eligible for capital cost allowance (depreciation) in 2015.

If you have a family trust, we recommend that payments due to beneficiaries be made before the end of the year.  This will avoid any complications with Canada Revenue Agency as to whether a beneficiary is entitled to the income allocated to them.

If you have any questions about year-end or other tax planning, call or email any one of our willing and able Tax Team members:

  • Garry  204-977-3520 or gchan@lazergrant.ca
  • Alex  204-977-3518 or azhang@lazergrant.ca
  • Ken  204-957-8205 or kgoodridge@lazergrant.ca
  • Ann 204-977-3879 or afuller@lazergrant.ca