Tax Stuff to do Before the New Year!

Today’s Tax Tip Tuesday is just some food for thought…what you can do to lower your April tax bill TODAY!

Since the end of the year is fast approaching (AKA end of the personal tax year), now is the time to maximize those tax credits for 2013.

So here’s (part of) the plan!

Donations

If you’re planning in making a donation to your favourite charity sometime in the next few months, you’re likely better off making it in December instead of in January. This gives you the tax credit in 2013 instead of having to wait over a year to get it in April 2015!!

Home Renovations

Got a reno to do? If it’s a certified eco-friendly renovation for over $2,500, it might qualify for a new Quebec tax credit. For more info, please get in touch…it’s a weekday and putting you to sleep at your desk is not the best way to keep my Funny Accountant title.

Business Expenses

If you’ve got a registered business or a corporation and are planning on making a larger purchase in the short-term or are planning on buying capital goods soon (furniture, computer, etc.), no better time than December! The deduction can then be used on the current year and will offset some tax. Capital goods are depreciated, meaning they are assigned a useful life (for computers it’s around 2 years) and this expense can be used in full in the year of purchase! Again, for more info, please contact me (see above re: the sleepy issue).

There are obviously many more ways you can plan to reduce your taxes before the end of the year and planning ahead is everything when it comes to tax. Each person, couple and family’s needs must be dealt with on a case-by-case basis…one person’s expense claim might be just the thing that triggers an audit for another.

Happy tax planning and happy rest-of-Tuesday!

Sincerely,

The Funny Accountant

Don’t forget to read last week’s post on Bill 60 and the Quebec Charter of Values and send me those notes and emails for submission to the National Assembly!

Also, please follow me on Twitter if you like what you read!  And as always, if you have tax questions, need advice on your personal taxes, corporate taxes or anything else accounting or business related, please contact The Funny Accountant/President of MK & Associates at mitch@mkassociates.ca

And, for a witty and insightful read, check out the wifey’s blog. It’s funny and good.
 

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