Tax Planning

You and your taxes: Establishing a year round process.
Does most of your tax planning take place during the last few months of the year? If so, you are not alone. However, to effectively reduce your current and future tax liabilities, tax planning should be a year round endeavor. Here are some opportunities.

Split your income
Income splitting involves structuring your affairs to move income into the hands of a lower-income family member who will pay less tax.
A spousal RRSP allows a higher-income spouse to contribute to the RRSP of a lower-income spouse. At retirement, this can help shift more income to the spouse who is expected to be in a lower tax bracket.
Another possibility is a spousal loan. As long as a prescribed rate of interest is paid, a spousal loan can be an effective way to transfer assets from a spouse in a higher tax bracket to a spouse in a lower tax bracket.

Donate securities
If you are considering a charitable donation, you may want to give stocks, bonds, or other publicly traded securities, including mutual funds. You’ll be deemed to have sold the investments at fair market value, however, any capital gains will be eligible for a reduced capital gains inclusion rate of 25% instead of 50%.
Continue reading You and your taxes: Establishing a year round process (pdf)

2009 Year End Tax Planning Considerations
Adam Salahudeen L.L.B – Senior Manager, Taxation Advisory Services, Financial & Estate Planning Group, Wealth Management
The end of another year is upon us once again. And while tax planning is a year-round activity and a vital component of the financial planning process, now is the time to pay special attention to various tax issues in advance of the end of the 2009 taxation year. The following outlines some common tax planning ideas and items that may need to be addressed, as well as some considerations for 2010.
Continue reading 2009 Year End Tax Planning Considerations (pdf)