2012-12-14 15:03:11 -
TORONTO, ONTARIO -- (Marketwire) -- 12/14/12 -- With the end of the year only a few weeks away, BMO Nesbitt Burns reminds Canadians not to wait until April to think about their taxes. The end of December marks an important time for many who are looking to minimize the amount of taxes they pay on their investment income.
According to a study released today by BMO Nesbitt Burns, 93 per cent of Canadians believe they are familiar with the income tax deadlines. However, when asked about various, specific tax deadlines, many did not know the correct dates for:
-- Charitable donations and tax credit/deduction deadline (61 per cent
unaware of the correct date)
-- RRSP contribution deadline for those turning 71 (70 per cent unaware)
-- Payment of quarterly tax installments deadline (73 per cent unaware)
-- TFSA withdrawal deadline (78 per cent unaware)
-- Tax-loss selling deadline (85 per cent unaware)
"It's important for Canadians to educate themselves on the various end-of-year deadlines to help ensure there are no missed opportunities to reduce their tax bill," said John Waters, Vice President, Head of Tax & Estate Planning, Wealth Group, BMO Nesbitt Burns. "Many tax strategies require foresight to be effective, and tax planning should be a year-round activity. Seek out the assistance of a financial and tax professional as soon as possible - waiting until the New Year to start thinking about taxes is often too late."
BMO Nesbitt Burns offers the following year-end tax-saving strategies:
1. Payment of Quarterly Tax Installments - Deadline: December 15(i)
-- 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
-- Canadian investors are often required to pay by installment since tax is
not deducted at source on investment income. If an investor falls short
on any required installments, he/she could incur non-deductible interest
2. Tax-loss Selling - Deadline: December 24
3. Charitable Donations & Other Tax Credits/Deductions - Deadline: December 31
4. TFSA Withdrawals - Deadline: December 31
5. RRSP Contributions for those turning 71 - Deadline: December 31
For more information on tax-efficient investing and planning, locate a BMO Nesbitt Burns Investment Advisor at www.bmo.com/nesbittburns.
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The results cited in this release are from an online Pollara survey with a random sample of 1,000 Canadians 18 years of age and older, conducted between November 29th and December 4th, 2012. A probability sample of this size would yield results accurate to +/- 3.1 per cent, 19 times out of 20.
(i) 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.
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