TAX TIPS

• Consider converting non-deductible interest into deductible interest by using available cash to pay down personal loans & then borrowing for investment of business purposes.

• If you own shares of publicly traded companies you may be able to make an RRSP deduction for 2000 and defer capital gains until 2001 without spending any cash.

• Either spouse regardless of which spouses’ name appears on the receipt can claim charitable donations and political contributions.

• Deadline for making deductible 2000 RRSP contributions is March 1, 2001.

• If the funds are available contribute to your RRSP early in the year so that it grows tax-free.

• Remember that disability income qualifies as earned income for RRSP purposes.

• Moving expenses can be claimed in the year of the move or the next year but only against income earned in the new work location.

• Deposit child tax benefit into a bank account in your child’s name so you aren’t taxed on the income it earns.

• You can pay your family a reasonable wage for work done at your business.

• You can pay one of your children to take care of another child as long as the child receiving the payment is over 18. This would qualify as a childcare expense.

• If you are operating a sole proprietorship and considering incorporating the date of incorporating and year-end selection can be a significant tax planning too!

• If you are an employee you may be able to claim expenses you incur if your employer will sign a T2200 form.

If you would like to discuss any of these tips or to discuss your personal tax situation please contact our office at 780-464-3560 or by e-mail at HLLPinfo@holtzmanLLP.com.

back to services