10 Things To Know About Tax Planning
Everyone is busy getting their taxes organized and files ready. 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.
It’s time to do some tax planning
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.
Marginal Tax vs Average Tax
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.
Tax tips from a blunt bean counter
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.
Common mistakes people make on their tax return
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.
Tax smart investment tips
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.
Top timeless tax tips
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 strategies in retirement
Three D’s of Tax Planning
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.
RRSP Guide: The basics of RRSPs
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 Tax Free Savings Account (TFSA)
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.