As the year comes to a close, it’s time to start making last minute tax planning decisions. This may include deciding whether to make a holiday donation. Depending on your situation it may be the perfect time … or it may be best to wait until the new year.
While this year’s holiday celebration will probably be different than those in the past, one thing remains the same - the tax treatment of employee gifts. If managed incorrectly there can be unexpected tax consequences for both you and your employees.
Unlike Registered Retirement Savings Plans (RRSPs), there’s no time constraints for TFSA contributions.
This is because the money you deposit into your TFSA is taxed on the current year's return, when you withdraw the funds, you don’t have to pay taxes … even if the withdrawal includes interest earned (investment income).
When you put money into your RRSP (Registered Retirement Savings Plan) you can deduct the amount you contribute from your taxes in the same year. If you withdraw funds from your RRSP you would then have to pay the applicable taxes on that amount.
Canada United, created by RMC is a movement to support local businesses across Canada. The Canada United Small Business Relief Fund (CUSBRF) was created to help small businesses with the cost of expenses to reopen safely, or adopt e-commerce technologies to conduct more of their business online.
Over $14 Million has been contributed by the Federal Government, RBC, and Canada United partners to support economic recovery due to COVID-19.
Registered retirement savings plans are one of the last minute tax planning strategies that most Canadians can take advantage of. That is because the period for making contributions in any given tax year ends 60 days after the end of the calendar year. That being said, there are some instances where your RRSP tax strategy needs to be considered before December 31.
Beginning in 2021, there will be new reporting requirements for Canadian residential trusts.
Most employed Canadians have their income taxes deducted at the source when they receive a pay cheques. The employer then remits this amount to the government.
But some Canadians must pay their taxes by installment. This includes retirees and the self-employed, primarily.
