Year End Tax Planning – Two Tips

Tuesdays on this blog will always be about financial learning. My financial tips are available on my site and you can sign up to receive the tips by email.

It is exactly three weeks until year end for all individuals in Canada. What could you do to improve your personal income tax situation for 2013 between now and then?

If you are able to deduct medical expenses (must be more than 3% of your net income) for 2013, then you should consider if there are any medical expenses you could incur in December of 2013 rather than January of 2014. If you spend the money in January you do not get the deduction until you file your 2014 tax return, in early 2015. It is also possible that you will not have enough medical to claim in 2014. Do you need new glasses? Some dental work? Buy a bunch of contact lenses? Think about it soon.

Do you contribute to any charities? If so the same strategy applies. Contribute in 2013 and get the benefit on your 2013 return – wait until January and you don’t get the benefit until 2014.

This picture is of the giant trees decorated in Capilano Park. I am still in Vancouver and visited the park tonight. It is lovely with all the lights, even in a persistent drizzle! I walked on the swinging bridge and did the TreeTop and Cliff walks. I would recommend anyone who visits Vancouver should check this out.

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