Tax Planning

MAKE THE CHOICE THAT'S RIGHT FOR YOU

Tax planning is an essential aspect of a financial plan yet it is often the most neglected.

Tax planning is a common thread running through all aspects of financial planning. Building and preserving wealth (money, investments, real estate, etc.) throughout one's life and beyond is challenging without employing ways to minimize taxes.

At Strategic, our job is to keep more of your finances in your hands (or those of your family and dependents) by recommending relevant tax optimization tactics. There are numerous ways to reduce taxes, including charitable giving, trusts, tax-deferred savings plans, income splitting and holding specific assets in the right account.

A Strategic advisor will work with your accountant or lawyer (in their absence, an advisor's own network of such professionals can be brought to the table) to review and implement any such strategy.

Personal Tax Planning Calendar

January

• Consider making $2,000 lifetime over-contribution to your RSP.
• Review your Will to ensure it is still appropriate.
• Consider depositing the Child Tax Benefit payments into an in-trust account for your child. The income earned on these payments is taxed in the hands of the child.

February

• Consider income splitting with your children to provide them with enough income to support their educational expenses or establish an RESP.
• Make your maximum RSP contribution - a maximum of $13,500 through the 2003 tax year.

March

• 1st - RSP contribution deadline. If it's a leap year, the deadline is February 29.
• 15th - 1st quarterly Canadian tax installment is due.
• 31th - Inter vivos/Living Trust tax return deadline. If it is a leap year, the deadline is March 30. If you are expecting a tax refund, consider filing your personal tax return early - but only after you have received all your important tax information.

April

• 30th - Deadline to file your Canadian personal tax return and pay any balance owing, to avoid paying interest and a late filing penalty.
• Consider the impact of the new Federal and Provincial Budgets on your personal finances.

May

• Consider income splitting strategies with your spouse and/or children to reduce future taxes payable.
• Consider contributing early to your RSP. For more information, please refer to our publication, Retirement Savings Plans.

June

• 15th - 2nd quarterly Canadian tax installment is due.

July

• Review your estate plan and Will to ensure they are still appropriate. Assess your estate plan to ensure estate is structured to minimize probate taxes payable.

August

• Make sure all adult family members have an Enduring Power of Attorney.

September

• 15th - 3rd quarterly Canadian tax installment due.
• To defer tax on interest income, structure fixed-income purchases so that the anniversary date is not between the purchase date and the end of the calendar year.

October

• Consider contributing to a spousal RSP to achieve income splitting in retirement.

November

• If you expect significant tax deductions next year, consider applying now for a tax waiver to reduce withholding taxes at source.

December

• 15th - 4th quarterly Canadian tax installment is due.
• Consider selling securities with accrued losses for tax purposes to offset realized capital gains.
• Ensure that the trade settles in the current calendar year and superficial losses are avoided.
• To obtain a tax deduction in the current year, pay your deductible expenses and make charitable donations before the end of the year.
• If you turn 69 during the year, make your final RSP contribution before the end of the year. Contributions to your RSP cannot be made after the end of the year in which you turn 69. If you are over age 69 and still have earned income, you can make your RSP contribution to a spousal RSP if your spouse is age 69 or under.

• Hours of Operation:
• Monday-Friday 8:30am - 5:00 pm.

• Telephone: (780) 488-2644
• Fax: (780) 488-0844
• Toll Free: (800) 463-1852

• Suite 406, Capital Place
• 9707-110th Street
• Edmonton, Alberta
• T5K 2L9

• Hours of Operation:
• by appointment.

• Telephone: (780) 488-2644
• Fax: (780) 488-0844
• Toll Free: (800) 463-1852

• Suite 301 1100 8th Avenue SW Calgary, Alberta