As we approach the end of the year, it’s a good idea to think about personal income tax planning now so that you can maximize tax savings in 2021 and be prepared when final tax payments are due.
Since individuals are taxed on a calendar year basis, Dec. 31, 2021 is generally the last date for transactions that affect 2021 personal income taxes. So even though your personal tax return won't be due until May 2, 2022 since April 30 falls on a Saturday (or June 15, 2021 if you or your spouse/common-law partner is self-employed), there are good reasons to consider a number of tax planning opportunities now before it's too late.
Below are some strategies to help you manage your tax costs. Keep in mind that while not all of these strategies may apply to your particular situation, a trusted BDO advisor can assist you with your tax planning needs.
It's not too late to save on your 2021 taxes
Tax planning shouldn't be something that only happens when you file your tax return. By investing some time to review your personal tax situation during the year, and especially as you near the end of the year, you may find some easy ways to save on your annual personal tax bill.
Contact your local BDO office today to see which year-end strategies work best for you.
Rachel Gervais, GTA Tax Service Line Leader
Greg London, Eastern Canada Tax Service Line Leader
Bruce Sprague, Western Canada Tax Service Line Leader
The information in this publication is current as of Oct. 25, 2021.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.