6 year-end strategies for saving on tax

By Staff | December 13, 2013 | Last updated on September 15, 2023
2 min read

No one wants to miss out on savings. Ensure your clients know about important tax-saving deadlines coming up this weekend. And check out these other useful tax tips from BMO Nesbitt Burns.

Read: 8 great year-end tax tips

1. Payment of quarterly tax installments

Deadline: Dec. 15*

Individuals whose estimated income tax payable for the year, or payable for either of the two preceding years, exceeds $3,000 ($1,800 for Quebec residents) may be required to pay income tax installments. Personal tax installments are due four times a year, with the final installment due December 15.

Read: Don’t delay planning

2. Tax-loss selling

Deadline: Dec. 24

If your client has investments that have depreciated in value, she should consider selling these investments before year-end to offset capital gains realized earlier in the year. This move reduces her overall tax bill. It is important to ensure that a sale makes sense from an investment perspective, since stocks sold at a loss cannot be repurchased until at least 31 days after sale to be effective.

Read: How to tax-loss harvest

3. Charitable donations & other tax credits or deductions

Deadline: Dec. 31

  • Ensure all charitable donations are made before the end of the year in order to receive a tax receipt for 2013.
  • Instead of donating cash to charities, clients should consider donating appreciated publicly-traded securities. This provides a tax credit and could potentially eliminate any capital gains tax on the accrued gain on the security.
  • Dec. 31 is also the final payment date for a 2013 tax deduction or credit for expenses such as childcare, medical, tuition and the recently-introduced children’s fitness and arts tax credits.

Read: Tax tips for giving to charity

4. TFSA Withdrawals

Deadline: Dec. 31

If your client is planning a withdrawal from her TFSA, consider making this withdrawal in December instead of waiting until the New Year; a withdrawal would result in additional TFSA contribution room for the following year.

Read: Faceoff: TFSA vs RRSP

5. RRSP Contributions for those turning 71

Deadline: Dec. 31

Individuals who turned 71 years of age in 2013 must collapse their RRSP by the end of the year. Such individuals should consider a final RRSP contribution, assuming any unused contribution room exists.

Read: Reliable retirement income streams

* When a due date falls on a Saturday, a Sunday, or a holiday recognized by the CRA, payment will be considered on time if received the next business day.

Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.