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CPA Canada: YE Actions to Take Before December 31

CPA Canada: YE Actions to Take Before December 31

Financial year-end: Actions to take before Dec. 31

Date: December 1, 2020
Source: CPA Canada
Author: Mathieu de Lajartre

The tax-filing deadline may be months away, but there are only a few weeks left to reap all of the potential financial benefits. Due to the pandemic, it’s been a chaotic year for many people, so it’s worth not waiting until next year to take a look at your finances. Here are some deadlines and benefits to keep in mind:

CANADA EMERGENCY RESPONSE BENEFIT (CERB)

Taxpayers who received the CERB should be aware “they’ll need cash on hand when the time comes to pay their taxes,” says Julie Lacoursière, CPA, CGA, senior manager at the tax department at BJC, one of the 25 largest accounting firms in Québec…

CANADA EMERGENCY BUSINESS ACCOUNT (CEBA)

Business owners who do not pay employment income and sole proprietors who earn direct income from their business are among those who, until Dec. 31, 2020, can apply for CEBA…

RRSPS

“Generally, you can contribute to your RRSP during the 60 first days of the following year [i.e. March 1, 2021 for the 2020 tax year], but not if you turned 71 during the year,” says Lacoursière…

TFSAS

If you must withdraw from your TFSA and plan to recontribute the money in the future, says Lacoursière, do it in December because the amount taken out will be added to your contribution room for 2021…

CAPITAL GAINS AND LOSSES

“Some people may have carried out transactions that generated capital gains this year,” says Lacoursière. “By selling securities that have an accrued loss, they can lower their taxes by offsetting the loss against the gains…

…and several more items.

Visit CPA Canada’s Website for the full list: https://www.cpacanada.ca/en/news/holiday/2020-12-01-financial-cleanup?sc_camp=436692B74E1441A798C8CCAEF9E9FCF8