Here are some important deadlines to be aware of for 2016:
December 23, 2016 - Last day for Canadian and US tax loss selling
If you want to take advantage of tax-loss selling for Canadian and U.S. listed securities, December 23 is the last day you can sell investments to have them qualify for the 2016 tax year.
December 30, 2016 – Last day for US tax loss selling for US Residents for Canadian and U.S. Securities
December 31, 2016 - Last day for RESP contributions and 2016 TFSA contributions
The final deadline for contributions to a Registered Education Savings Plan (RESP) or Tax-Free Savings Account (TFSA) to make sure it counts for the 2016 tax year.
December 31, 2016 - 2016 charitable contributions
The last day for making charitable donations to claim the deduction in the 2016 tax year.
March 1, 2017 - Last day for 2016 RRSP contributions
The annual contribution limit is 18% of earned income for the previous year.
For 2016, the limit is $25,370.
Other elements to consider:
Contributions to client’s employer’s pension plan reduce the amount they can invest in an RRSP.
Your unused contribution room (annual contribution limit less contributions paid) for a year can be carried forward.
To know the exact amount of your contribution limit, please refer to the “RRSP Deduction Limit Statement” section of the Notice of Assessment sent each year by the Canada Revenue Agency. Or look on “My Account” on CRA’s website.
May 1, 2017 - Last day to file and pay your 2016 taxes
Remember, always check with a qualified tax professional before considering any tax loss selling strategies.