Report offers tax tips for 2018

Toronto – A new report aims to help Canadians unlock potential tax savings strategies before year end and offers timely advice to small businesses on proposed tax changes.

“We know that for most Canadians, their tax bill isn’t top of mind until crunch time,” said Jamie Golombek, managing director of tax and estate planning for CIBC Financial Planning & Advice, and author of the report, 2017 Year End Tax Tips. “But, everyone – from investors to students and small business owners – can save money on their 2017 tax bills through various tax credits and benefits if they take certain steps before year-end. If you don’t consider them by Dec. 31, it will be too late when you file your tax return next April.”

In the report, Golombek provides a comprehensive overview of some notable tax-planning opportunities that should be considered before the Dec. 31 deadline:

• New deadline for tax-loss selling
• Charitable donations for first-time donors
• Home renovation tax credits
• Private corporation business owners

For private corporations, some of the recently proposed tax changes could impact income sprinkling and passive investment income earned within corporations, CIBC said in a news release. These changes could result in tax rates of more than 40 per cent (depending on the province) when small business income is distributed as dividends to family members after 2017 and may be of particular concern for families that have implemented estate freezes.

“Business owners should seek specific advice from their tax expert to understand how the revised tax rules will impact them,” Golombek said in a news release. “The tax environment is constantly evolving, which is why it is important for tax planning to be part of ongoing business planning. 

Read the full report.