Noone likes tax time, and even though it’s a ways away we should probably start thinking about it. I came across some informative tips to help you make the most of your tax return this year. Enjoy!
Tax-planning should be a year round activity. Even if you’ve been otherwise occupied this year, you still have time to save money on your 2009 taxes by using strategies like these.
Be deadline savvy — File your tax return and make tax payments on time to avoid penalties and interest. Payments that qualify for tax credits and deductions should be made by Dec. 31.
Deduct to save — Take full advantage of all tax deductions including the most important — your Registered Retirement Savings Plan (RRSP) deduction. Be sure to fill up all your RRSP contribution room.
Give yourself all the credit — Make full use of tax credits to reduce your tax bill by:
• Pooling medical expenses on the tax return of the lower earning spouse.
• Pooling charitable donations or carrying them forward for up to five years to surpass the $200 threshold that increases your credit.
• Using the spousal credit for the higher-earning spouse.
• Transferring the age, disability, tuition and/or education credits to a spouse or supporting relative when not used by a dependent.
• Don’t forget the first time homebuyer, home renovations and moving expenses credits.
Split to save — Income-split by sharing pension income with a spouse, through a spousal RRSP or by paying a salary to (eligible) family members.
Be RRSP savvy — If you’re turning 71 this year, you must wind up your RRSP and need to decide whether to take the cash (poor choice) or transfer the funds to investments held within a Registered Retirement Income Fund (RRIF) or annuity (much better choices). If you have earned income, you can continue making contributions to a spousal plan until your spouse reaches age 71.
Save tax-free — Make up to a $5,000 contribution to a Tax-Free Savings Account (TFSA). The contribution isn’t tax deductible but money and interest inside your TFSA is tax-free and so are withdrawals that you can make at any time for any purpose. Amounts withdrawn are added to your TFSA contribution room for the following year.
Make down investments pay off — Plan to sell money-losing investments by the Dec. 31 settlement date, which creates capital losses, which can then offset capital gains.
Buy now to save — If you’re self-employed and claiming the capital cost allowance (CCA) on depreciable assets, buy them before year-end to speed up tax write-offs.
Move to save — If you’re moving to a province with a lower tax rate, do it before Dec. 31 and you’ll pay the lower rate for the full year. If you’re moving to a province with a higher tax rate, try to delay until 2010.
What’s best tax-saving tip of all? Talk to your advisor before year-end to be certain you make the most of the other tax-reduction strategies available to you.
Source: www.cren.ca
When you’re thinking of renovating your house take some of these tips into consideration. I found them to be quite helpful and they helped me be more prepared in what questions to ask contractors.
How to Get What You Want — and What You Pay For
Without the proper planning, renovating your home can be a stressful, time-consuming and expensive experience. But sooner or later, almost all homeowners need to hire a contractor to carry out a renovation or repair. So how can you find and select the right contractor, to ensure your dream renovation goes as smoothly as possible?
To help you choose, Canada Mortgage and Housing Corporation (CMHC) has a number of tips for hiring a contractor to help make sure you get what you want — and what you pay for — including:
· Ask for referrals from family, friends and neighbours who’ve had similar work done. You can also get names from local home builders’ and renovators’ associations, building supply stores, municipal building departments and the Internet.
· Discuss your project with a few potential contractors to get their suggestions on how they would do the work. Depending on your project’s scope and complexity, you may get a rough estimate of costs, but the first meeting is usually more to get to know the contractor and their work. So unless you have been able to check out the contractor ahead of time, you shouldn’t sign or pay anything at this stage.
· Ask as many questions as you can, such as: How long have they been in business? What work are they or their subcontractors licensed to do? What work do they specialize in? Have they done similar jobs before? Will they use their own crews or subcontractors? What schedule will they follow? Do they offer a warranty, and what does it cover? Do they carry workers’ compensation and liability insurance? Will they provide a written contract?
· Get at least three references from each contractor, then phone or — if they’ll let you — visit them to see the finished job, and ask if they were satisfied with the renovator, the tradespeople and the quality of their work.
· Many homeowners prefer to get a number of estimates before making a decision, while others strongly prefer one contractor, and ask only the one to submit a formal estimate. Whatever your preference, make sure you get adequate information to make the right choice. As a general rule, with the proper drawings and specifications, three estimates combined with your discussions with the contractor and reference checks will usually provide enough information for you to make a decision.
· Finally, no matter how large or small your renovation is, make sure to get a detailed written contract. While the offer of a “good deal” for work paid in cash may be tempting, without a written contract, you could lose your deposit, end up with poor quality work, find yourself charged far more than you expected or worse. Once you have the contract, don’t sign it until you have read it carefully. Be sure you understand what it says and are satisfied that it describes exactly what you want — and includes everything you have been promised.
Source: www.cmhc.ca