There are just a few more sleeps until the big day. That’s right; TAX DEADLINE DAY. April 30th. comes around sooner then you think. There’s still time to make some savvy tax moves that will help minimize the financial hit come spring. Contributing to an RRSP for example: Contribute to your RRSP—even if you’re 71 If youre turning 71 this year, you are required to convert your RRSP to a Registered Retirement Income Fund – (RRIF) by the end of the year. In many cases, you will either have RRSP contribution room available from previous years or, if youre still working, will have generated RRSP contribution room. The problem is, by the end of the year, you will lose access to your RRSP, and so making a contribution next year will not be possible. Make next year’s contribution before the end of this year even if this means over-contributing. That 2013 contribution will generate an RRSP deduction tax slip that you can carry forward to next year to apply against your taxable income then, providing you with another tax deduction you wouldn’t have otherwise. A penalty will apply for any over contributions, but the tax savings from the RRSP deduction may well far outweigh that penalty. Do the math first. Check out our Facebook Page - Ron Evans Enterprises - for more useful and worthwhile Tax Tips.....
Posted on: Mon, 20 Jan 2014 23:06:29 +0000
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