As the tax filing deadline looms, you’re likely falling into one of three categories:
- the early filer — sitting pretty without stress
- the quarterback — you’ve already passed your ball (tax docs) to your accountant
- the countdown-er — you’re hoping you’ll have your shoebox of receipts put together by April 29th, with a 5pm drop-off to the tax preparer
Whether you like the stress that tax prep brings or not, tax planning is not just something that should be done in the month of March or April. A great time to begin tax planning with a financial professional is actually right after your most recent returns have been completed so you know what changes you may need to implement to be prepared for next year. Often your accountant can work with you to determine the amount of deductions you could use in order to best position your income for tax purposes, however may not be the ideal individual to plan and implement the mechanisms for your deductions. For example, are RRSP’s the right route for you to go if there are no other deductions available?
Let’s talk more about reducing your taxes!
Here’s some quick reference material with tips that you can use whether you’re self-filing or using a pro (courtesy of my friends at Mabon Bookkeeping)!