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Canadians usually affiliate tax season with submitting returns in March or April, however now could be a vital time to plan your taxes, says one professional.

“12 months-end is actually the vital time to do your tax planning,” Jamie Golombek, managing director of tax and property planning at CIBC Personal Wealth and a Monetary Put up columnist, stated in a latest interview with FP’s Larysa Harapyn. “There are very particular issues that it is advisable do earlier than the tip of the 12 months to reap these advantages come subsequent submitting season.”

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Tax-loss promoting is one place to begin, however maybe not for these trying to offset capital beneficial properties in overseas forex investments.

Golombek stated buyers who bought U.S. shares 10 or 11 years in the past, when the U.S. greenback was on par with the Canadian greenback, ought to think about recalculating their foreign-exchange losses as a result of a loss on paper could be a acquire when transformed to Canadian {dollars}.

“Tax-loss promoting will truly backfire on you, so be mindful the overseas change when doing these acquire and loss calculations,” he stated.

First-time homebuyers also can take benefit by opening a first residence financial savings account (FHSA) earlier than the tip of the 12 months. The account permits first-time homebuyers to contribute as much as $8,000 per 12 months and obtain a tax deduction for his or her contributions.

Golombek stated the advantage of opening an account in 2023, even if you happen to solely contribute $100, is which you could carry ahead the unused room (an extra $7,900 on this case) and contribute extra the next 12 months.

“There’s no danger … so individuals ought to get on that in the event that they’re a first-time homebuyer,” he stated.

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Golombek additionally suggested owners to look at the brand new credit out there for 2023, such because the multi-generational residence renovation tax credit score. For instance, Canadians who’ve renovated to create a secondary dwelling for a senior (65 or older) or an individual with a incapacity can get a 15 per cent federal credit score on as much as $50,000 in bills.

He additionally provided some recommendation for the highest one per cent of earnings earners ($173,000 and above) concerning new different minimal tax (AMT) laws.

“Beginning Jan. 1, 2024, AMT may have a way more important impression for sure taxpayers,” he stated.

To this point, capital beneficial properties have been 15 per cent taxable, however within the new 12 months, they are going to be 100 per cent taxable. Nonetheless, there are methods to keep away from the AMT, Golombek stated, together with realizing a big acquire, promoting a property or making giant charitable donations earlier than year-end.

• Electronic mail: novid@postmedia.com

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