To take full advantage of the tax-deferred growth available when investing in a tax-free savings account (TFSA), many Canadians strive to maximize their TFSA contributions as early in the year as possible. However, while the goal with a TFSA should be to contribute as much as you can within the limits of your available contribution room, you also need to be mindful not to over-contribute. Putting more money in a calendar year than you’re allowed by law could result in penalties. The severity of which will depend on the circumstances of the over-contribution.
With the end of the year fast approaching, Canadian taxpayers will want to consider all the tax planning opportunities available to them. Which year-end planning strategies apply to you will depend upon your specific circumstances and objectives. The IG Wealth Management Year-end Tax Planning Checklist can help you understand what opportunities are most suited to you.
If your child is planning to start post-secondary studies this year, congratulations! It’s an exciting life transition and also a critical time to educate yourself about strategies for Registered Education Savings Plan (RESP) withdrawals.
A family vacation home is more than an asset. It’s years of shared memories. That’s why passing it on to your children can be both emotionally and financially taxing.
If you own an incorporated small business in Canada, you might pay more in tax. But it may not be as much as you think.