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As the end of the year approaches, many people turn their attention to income tax planning. |
Individuals are taxed on a calendar year
basis so December 31, 2010 represents the last date for transactions
that affect 2010 taxes. There are other “tax deadlines” that fall around
this time or early in the new year, such as the Registered Retirement
Savings Plan (RRSP) contribution deadline. Therefore, the year-end is
generally a good time to take stock of your income and deductions and to
make decisions about your overall tax position for 2010.
Ideally, tax planning should be considered on an ongoing basis
throughout the year as part of an overall financial plan. All taxpayers
should review their particular situation regularly to ensure that
they’ve structured their financial affairs to minimize tax as much as
possible. In particular, any major transactions should be examined in
advance to ensure that tax considerations are taken into account.
However, even if you haven’t actively monitored your tax situation
throughout the year, there are still a number of steps you can take
before year-end to minimize your taxes for 2010. This edition of the Tax Factor summarizes many of these tax planning ideas. Not all of our suggestions
may be appropriate for your particular situation. Others, though
included as year-end points, could also apply throughout the year. Your
BDO advisor can assist you in determining which of these ideas make
sense for you.
Next section: Employment income
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