Koroll & Company Blog

Once the tax year comes to a close, there are very few steps that can be taken to further reduce income and tax liability. There are, however, some last minute tax-planning strategies that can be very beneficial. The first, which we speak of often, is contributions made to an RRSP (registered retirement savings plan). The other is Pension Income Splitting.

Pension Incomes Splitting is a tax planning tool that was implemented for taxpayers over the age of 65 (and in some cases 60). When implemented correctly, as part of your tax planning strategy, Pension Income Splitting can reduce your tax liability and increase your eligibility for government benefits.

While it may not be the first thing that comes to mind when we ask ourselves what we want to do with our discretionary income, contributing to saving plans is critical to an enjoyable retirement.

The deadline for 2017 Registered Retirement Savings Plan (RRSP) contribution is March 1, 2018, which means many of us are dealing with the annual decision of whether we should put our savings into an RRSP or a Tax-Free Savings Account (TFSA).

While employees are not able to deduct the same number of expenses as self-employed individuals, there are some specific expenses that can be deducted from employment income to help reduce your tax liability.

The following expenses may be deducted from your employment income, if the eligibility requirements are met.

It is important to note that these amounts should include GST and HST paid on goods/services.

Self-employment comes with a number of great benefits. You have more freedom and independence, you’re in control of your schedule, you choose your own clients and you set your own rates. It can also be incredibly lucrative.

But did you know self-employment means you have access to tax credits and deductions that can help decrease your tax liability.

Here are some of the most common tax deductions you will want to make note of this tax filing season.

Global Intangible Low-Taxed Income, known as GILTI, is a newly introduced provision that requires United States shareholders to include additional earnings, in their gross income, for income derived from controlled foreign corporations (CFC).

It’s time to finalize your 2017 taxes and start planning for 2018. As with every new year, 2018 has its own set of payment and filing deadlines that every taxpayer needs to know about.

Below is a listing of significant dates and information that you will want to make note of.

RRSP Contributions

RRSPs can be a great tool for reducing your tax owing.

Unlike other tax planning tools, you can utilize your RRSP until March of the following year. As such, the RRSP contribution deadline for your 2017 tax return is March 1, 2018, unless you turned 71 in 2017. In that case, you RRSP contribution deadline was December 31, 2017.

We often discuss the benefits of Tax-free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs), as both tax planning and retirement saving tools.

As the year comes to a close many Canadians are taking advantage of year-end tax planning strategies to minimize their tax liabilities for 2017.