Check out this financial year-end checklist
December has some important deadlines that could affect your 2021 taxes. Here are some of the key ones:
RRSP conversion. If you turned or are turning 71 this year, December 31 is the deadline for collapsing your Registered Retirement Savings Plan (RRSP). However, planning for this important financial change should be done well in advance of the deadline.
Tax-loss selling. You have until late December to sell a security that settles in 2020. December 24 is the expected last buy or sell date for Canadian securities to settle in calendar year 2021, based on trade date plus two business days.
However, it is advisable to review your non-registered portfolio earlier to consider the sale of securities with accrued losses before the end of the year to offset capital gains realized in the year, or in the three previous taxation years if a net capital loss was created in the current year.
Charitable donations. December 31 is the deadline for making a charitable donation that can be claimed for the 2021 tax year.
Tax deductions and credits. December 31 is also the final payment date in order to receive a 2021 tax deduction or credit for expenses such as childcare and medical and tuition tax credits.