TORONTO, ONTARIO — (Marketwire) — 12/13/11 — With the end of the year only a few weeks away, BMO Nesbitt Burns reminds Canadians that they shouldn-t wait until April to think about their taxes. The end of December marks an important period for many who are looking to minimize the amount of taxes they pay on their investment income.
According to a BMO Nesbitt Burns study, many Canadians remain unsure about how taxes affect their investments:
John Waters, Vice President & Head of Tax, Estate and Trust Expertise at BMO Nesbitt Burns, advised investors to seek out the assistance of a financial and tax professional. He cautioned that waiting until the New Year to start thinking about taxes is often too late, as many of the cut-off dates that can lower taxes fall at the end of the calendar year.
“Although tax planning should be a year-round affair since many tax strategies require foresight to be effective, there are still opportunities to reduce your 2011 tax bill – particularly if you act before the end of the calendar year,” said Mr. Waters.
John Waters Suggests Considering the Following Six Year-End Tax-Saving Strategies:
1. Payment of Quarterly Tax Installments – Deadline: December 15
2. Tax-loss Selling – Deadline: December 23
3. Charitable Donations & Other Tax Credits/Deductions – Deadline: December 31(i)
4. Dividend Income – Deadline: December 31(i)
5. TFSA Withdrawals – Deadline: December 31(i)
6. RRSP Contributions for those turning 71 – Deadline: December 31(i)
(i) Note that December 31 falls on a Saturday this year, so plan accordingly.
Contacts:
Media Contacts:
Amanda Robinson, Toronto
416-867-3996
Sarah Bensadoun, Montreal
514-877-8224
Laurie Grant, Vancouver
604-665-7596