We are quickly approaching the most wonderful time of the year. We aren’t referring to Christmas or New Year’s, but to TAX TIME!
The end of the year makes us giddy at Calgary’s Choice Tax Services. Though we do love to bake and spread Xmas cheer, it means tax time is just around the corner.
Everyone is so busy at this time of year (unfortunately due to COVID, a little less so this year sadly). We always feel more generous and our thoughts turn to those less fortunate, beginning on “Giving Tuesday”, December 1, this year. You have until December 31, 2020 to contribute to an approved charity of your choice and be able to claim the donation on your 2020 income tax return. The need is great, if you can, contribute money or your time (though unfortunately your time is not claimable on your tax return) to a meaningful organization.
This year we have been able to deliver Christmas trees to a few individuals without vehicles, and to help a few families with winter clothing and gifts for their children. At this difficult time of COVID, it warms the heart to help others.
With respect to end of year tax planning, if you have some investments presently at a loss, you might want to speak with your advisor and look at selling; losses can be carried back 3 years to a year in which you had a gain or forward indefinitely. Conversely, if you have unused losses, it might also be a time to sell and to recognize those gains.
At this time of year, people don’t tend to think about saving, especially this year, but rather on spending during the holidays. It is a good time though to start thinking about an RRSP contribution; the deadline is March 1, 2021.
For those who received CERB, you may have a tax bill, so if you can put even a little money away, it may help cushion the blow.
If you have some time off prior to the end of the year, begin to organize your records, especially if you are a sole proprietor or own rental properties. You will be thankful that you didn’t leave it until the last minute.
We wish our clients, colleagues, friends and family good health and happiness.
In the spring, we were sadly not able to visit with clients due to COVID and we certainly missed our annual catch-ups with clients. We fear that once again, we may have to focus on physically distanced income tax return preparation. Regardless, we are here to worry about your taxes, so you don’t have to!
Merry Christmas and a Happy New Year.
If we can help support your planning, don’t hesitate to reach out.
Email Sharon@CalgarysChoiceTaxServices.com or Call (403)703-7176
Visit us at CalgarysChoiceTaxServices.com
