The right way to elevate your possibilities of getting a much bigger tax refund subsequent 12 months

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Canadians typically affiliate tax season with submitting returns in March or April, however now’s a crucial time to plan your taxes, says one knowledgeable.

“12 months-end is absolutely the crucial time to do your tax planning,” Jamie Golombek, managing director of tax and property planning at CIBC Non-public Wealth and a Monetary Put up columnist, mentioned in a latest interview with FP’s Larysa Harapyn. “There are very particular issues that you want to do earlier than the top of the 12 months to reap these advantages come subsequent submitting season.”

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Tax-loss promoting is one place to begin, however maybe not for these seeking to offset capital features in overseas foreign money investments.

Golombek mentioned traders who bought U.S. shares 10 or 11 years in the past, when the U.S. greenback was on par with the Canadian greenback, ought to think about recalculating their foreign-exchange losses as a result of a loss on paper is likely to be a acquire when transformed to Canadian {dollars}.

“Tax-loss promoting will truly backfire on you, so take note the overseas alternate when doing these acquire and loss calculations,” he mentioned.

First-time homebuyers can even take benefit by opening a primary house financial savings account (FHSA) earlier than the top of the 12 months. The account permits first-time homebuyers to contribute as much as $8,000 per 12 months and obtain a tax deduction for his or her contributions.

Golombek mentioned the advantage of opening an account in 2023, even should you solely contribute $100, is that you would be able to carry ahead the unused room (a further $7,900 on this case) and contribute extra the next 12 months.

“There’s no danger … so individuals ought to get on that in the event that they’re a first-time homebuyer,” he mentioned.

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Golombek additionally suggested owners to look at the brand new credit accessible for 2023, such because the multi-generational house renovation tax credit score. For instance, Canadians who’ve renovated to create a secondary dwelling for a senior (65 or older) or an individual with a incapacity can get a 15 per cent federal credit score on as much as $50,000 in bills.

He additionally supplied some recommendation for the highest one per cent of earnings earners ($173,000 and above) concerning new different minimal tax (AMT) laws.

“Beginning Jan. 1, 2024, AMT might have a way more vital affect for sure taxpayers,” he mentioned.

To this point, capital features have been 15 per cent taxable, however within the new 12 months, they are going to be 100 per cent taxable. Nonetheless, there are methods to keep away from the AMT, Golombek mentioned, together with realizing a big acquire, promoting a property or making massive charitable donations earlier than year-end.

• Electronic mail: novid@postmedia.com

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