5 “End of the Year” Tax Tips
- Fix up the house. The deadline for the home renovation tax credit (HRTC) is coming up quickly. It’s a 15 percent tax credit and applies to purchases between $1,000-$10,000 for a maximum of $1,350. Materials must be purchased in 2009 but can be installed in 2010, but only labor completed in 2009 may be counted.
- 2.Contribute to your children’s education. If your child or grandchild doesn’t have a Registered Education Savings Plan (RESP) and they turned 15 in 2009, the last chance for them to get in is December 31, 2009. By contributing at least $2,000 this year, they will be able to collect a 20 percent Canada Education Savings Grant for 2009 and be eligible for 2010 and 2011. Missing this year’s deadline will make them ineligible for the next two years as well.
- Donate. Donations must be made by December 31 in order to get a tax receipt for 2009.
- Contribute to a registered disability savings plan. This tax-deferred plan is open to residents that are eligible for the Disability Tax Credit, their parents, and other eligible contributors. A maximum of $200,000 can be deposited and there are no annual limits. Contributions in 2009 may be eligible for the 2009 Canada Disability Savings Grant and the Canada Disability Savings Bond.
- Splurge on office furniture. Even if you purchase at the end of the year, you can still take half a year’s depreciation on new office equipment and furniture for small business owners and self-employed. Computer equipment purchased between January 27, 2009 and January 30, 2011, can be written off 100% in the year it is purchased.