10 Things To Know About Tax Planning
Everyone is busy getting their taxes organized and files for 2010. IF you have not done so already, there’s only one month left so it’s time to get cracking.
As much as the focus is on the past year, it’s an opportune time to start thinking about the current year as a real opportunity to do some tax planning. Rather than re-invent the wheel, I thought I would share some of my past articles on taxes and help you think more about planning than preparation.
This article on tax planning is a great starting place as it highlights the difference between tax planning and tax preparation. For those of you that are working with financial professionals, don’t expect tax planning without asking. Not all financial advisors or accountants do tax planning.
This is one of my most popular articles as it outlines what I think is the most important aspect of tax. Sometimes we complicate things more than we need to. The starting point of tax planning is simply understanding how marginal tax rates work and how they differ from the average tax rate. Far too many people think we pay half of our money to tax.
Every year I try to get an accountant to provide some practical tax tips. Mark Goodfield is a CA and managing partner with Cunningham LLP. He is also known as The Blunt Bean Counter. This meat and potatoes article is really worth a read.
Mike Oseen, with Grant Thorton is also a Chartered Accountant who knows a lot on tax. I asked him to share the biggest mistakes he sees on a regular basis when it comes to tax preparation.
In my experience, people tend to focus more on investing that taxes when it comes to wealth accumulation or financial planning. In this article, I highlight some key strategies to becoming a TAX SMART investor. It’s not how much you make that counts but rather how much you keep after taxes that is most important.
At the risk of getting repetitive, I thought this article was great because it shares the four basic tax-planning strategies I talk about on a very regular basis in my workshops. I can’t stress how important it is to have a basic foundation and understanding of taxes.
Income splitting is a key strategy for couples. This article outlines the three key income-splitting strategies for retirees. It’s very important to plan ahead when it comes to these strategies.
Deduct, defer and divide make up the three key tax planning strategies. This is MUST KNOW information and something I personally recognize as a key to financial success.
RRSPs remain one of the easiest tax strategies available to most Canadians. RRSPs are popular because they provide significant tax benefits in the tax deduction and tax deferral. This guide really has it all and will help you make better decisions about RRSPs.
The new Tax Free Savings Account is creating a lot of buzz and it is battling the RRSP as the best form of savings. As much as I love the TFSA, I think it is very narrow sighted to give up on the RRSP. The RRSP has tremendous tax benefits and the best strategy may be to do both.