How do you cut your tax bill?

With each financial decision taken by you, there is a tax implication. We all know that taxes are inevitable, and filing and paying these taxes can sometimes be cumbersome. However, this also implies that with the imposition of taxes on almost every financial decision that you take, you are getting one-step near to a disciplined financial planning; most importantly, your tax planning.

In simplest form, the core purpose of tax planning is to assist you in arranging your financial affairs efficiently, right from the beginning of your income generation, so that you end up owing lesser taxes at the end of the fiscal year.Considered to be the domain of personal tax accountant, tax planning has a significant impact on retaining maximum income of an individual or a business, by minimizing the taxes owed during a given fiscal year.

We, as provider of Calgary personal accountant services, specialize in offering innovative, yet lawfully abiding solutions to cut your tax bill; and ensure maximum retention of your income. Our services will assure that your personal tax return Calgary is filed on time; to help you in maximizing your tax savings, this year, as well as for many more years to come.

Our years of serving numerous clients in various tax scenarios and legal environments has enabled us to gather and disseminate some effective tax minimization strategies, which should be utilized for an individual tax payer to cut the tax bill. Here are a few pointers.

  • Contribute to Registered Retirement Saving Plans (RRSPs) to reduce current taxes (do not exceed your RRSP limit) using Form T1213
  • Contribute a part of your annual RRSP limit to a spousal plan
  • ShareCanada Pension Plan (CPP) benefits with spouses or common-law partners
  • Make use of and avail tax credits like Earned Income Tax Credit
  • Contribute to a Tax Free Savings Account (TFSA)
  • Contribute towards a Registered Education Savings Plan (RESP) of your children
  • Make investment or reinvest your interest income in financial instruments like common stock, preferred shares, tax-efficient mutual funds or natural resource income trusts
  • Create a corporation to conduct an active business
  • Claim your medical expenses and preserve all the medical receipts in case of an event of audit by CRA. You may also combine medical expenses of your spouse and other dependents on a family member’s tax return.
  • Gift shares of a public company to a charity

All the above tax minimization strategies are available to utilize for individual tax payers; and also for owners of businesses. However, the most important part is selection of your personal tax accountant, which will prove to be the most important step towards reducing your tax bill. We offer to you our services as Calgary personal accountant to ensure that your personal tax return in Calgary is taken care of in a hassle-free and the most efficient manner.

https://www.investopedia.com/
https://www.thebalance.com/
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Calgary Tax Pro

Calgary Tax Pro

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