News Feed Item

BMO Nesbitt Burns' Year-End Tax Study: Canadians Not Familiar with Specific Tax Deadlines

- Offers tips on year-end tax-saving strategies

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
    December 15.  
--  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
    or penalties.  

2. Tax-loss Selling - Deadline: December 24

--  If you have investments that have depreciated in value, consider selling
    these investments before year-end to offset capital gains realized
    earlier in the year to reduce your overall tax bill. It is important to
    ensure that a sale makes sense from an investment perspective, since
    stocks sold at a loss cannot be repurchased until at least 30 days after
    sale to be effective. Be sure to work with your BMO Nesbitt Burns
    advisor as well as your tax advisor in implementing this strategy. 

3. Charitable Donations & Other Tax Credits/Deductions - Deadline: December 31

--  Instead of donating cash to charities, consider donating appreciated
    publicly-traded securities. This strategy can provide a tax credit equal
    to the value of the securities donated, while also potentially
    eliminating the capital gains tax otherwise payable on the gain accrued
    on the security. Ensure all charitable donations are made before
    December 31, in order to receive a tax receipt for 2012.  
--  December 31 is also the final payment date for a 2012 tax deduction or
    credit for expenses such as childcare, medical, tuition and the
    recently-introduced children's fitness and arts tax credits. 

4. TFSA Withdrawals - Deadline: December 31

--  If you are planning a withdrawal from your Tax-Free Savings Account
    (TFSA), consider making this withdrawal in December instead of waiting
    until the New Year; a withdrawal would result in additional TFSA
    contribution room for the following year.  

5. RRSP Contributions for those turning 71 - Deadline: December 31

--  Individuals who turned 71 years of age in 2012 must collapse their RRSP
    by the end of the year. Such individuals should consider a final RRSP
    contribution, assuming any unused contribution room exists. Seniors
    and/or retirees should also take note of some of the important tax
    changes in recent years (such as pension income splitting, the
    amendments to the Canada Pension Plan and the introduction of the TFSA)
    that may impact their tax planning.  

For more information on tax-efficient investing and planning, locate a BMO Nesbitt Burns Investment Advisor at www.bmo.com/nesbittburns.

Get the latest BMO press releases via Twitter by following @BMOmedia

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.

Media Contacts:
Amanda Robinson, Toronto
[email protected]

Valerie Doucet, Montreal
(514) 877-8224
[email protected]

Laurie Grant, Vancouver
(604) 665-7596
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
SYS-CON Events announced today that eCube Systems, the leading provider of modern development tools and best practices for Continuous Integration on OpenVMS, will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. eCube Systems offers a family of middleware products and development tools that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.