Year-End Tax Planning Checklist
Maximize Your Tax Savings Before December 31
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Tax Planning Checklist
💼 Income & Deductions HIGH PRIORITY
Contribute up to 18% of previous year’s income (max $31,560 for 2026). Deadline: First 60 days of 2027 for 2026 deduction.
Sell losing investments to offset capital gains. Carry back 3 years or forward indefinitely. Beware 30-day superficial loss rule.
Consider deferring bonuses to next year if you expect lower income/tax bracket in 2027.
Calculate eligible workspace expenses if you work from home. Track utilities, rent, insurance, property tax proportionally.
🏢 Business Owners HIGH PRIORITY
Balance salary (creates RRSP room, CPP credits) vs dividends (lower rates, no payroll tax). Run the numbers for your situation.
Purchase equipment, supplies, software before Dec 31. Claim CCA (depreciation) immediately for eligible assets.
Repay shareholder loans taken during the year to avoid deemed income inclusion. Must repay by year-end.
Confirm active business income qualifies for 12.2% rate (Ontario) on first $500k. Manage passive income to preserve SBD.
Sole proprietor (T2125): April 30. Incorporated (T2): 6 months after year-end. Late filing = penalties.
💰 Investment & Retirement MEDIUM PRIORITY
2026 limit: $7,000. Cumulative room since 2009: $95,000. No tax on gains, no deduction for contributions.
Earn 20% CESG (Canada Education Savings Grant) on first $2,500/year per child. Lifetime limit: $50,000 per beneficiary.
Hold Canadian dividends (dividend tax credit) in non-registered. Keep interest income in TFSA/RRSP to avoid full taxation.
Split eligible pension income with lower-income spouse to reduce household tax. Up to 50% transferable.
💲 Credits & Benefits MEDIUM PRIORITY
Claim eligible expenses over 3% of net income (or $2,635, whichever less). Choose best 12-month period ending in tax year.
15% federal credit on first $200, 29% on excess. Ontario adds 5.05%-13.16%. Donate securities in-kind to avoid capital gains.
If you/dependent qualify, claim $9,428 federal + $9,521 Ontario credit. Retroactive claims possible up to 10 years.
Lower-income spouse claims up to $8,000/child under 7, $5,000 ages 7-16. Keep receipts for daycare, camps, babysitting.
📜 Documentation & Compliance ROUTINE
Gather T4, T5, RRSP, donations, medical, childcare. CRA can request supporting docs for 6 years. Digital or physical filing.
Check for reassessment letters, RRSP room, benefit payments. Enable email notifications to avoid missing deadlines.
Report births, marriages, separations. Impacts CCB, GST/HST credit, spousal amounts, eligible dependent credit.
Moved 40+ km closer to work/school? Claim transport, temporary lodging, storage, legal/real estate fees.
🏠 Property & Real Estate MEDIUM PRIORITY
Claim principal residence exemption on Form T2091 to eliminate capital gains on home sale. One per family per year.
Deduct mortgage interest, insurance, repairs, property tax, condo fees, advertising. Capital improvements depreciate via CCA.
If you bought qualifying home in 2026, claim $10,000 credit (worth ~$1,500 tax savings). Neither you nor spouse owned home in prior 4 years.
📅 Planning & Strategy PROACTIVE
Professional review finds missed opportunities: income splitting, credit stacking, multi-year tax planning. Worth 10x the fee.
If you owe $3,000+ (federal + provincial) two years running, CRA requires quarterly installments. Avoid interest penalties.
⚠ DISCLAIMER: This tool provides estimates for informational purposes only and does not constitute professional accounting, tax, or financial advice. Results may not reflect your specific situation. Tax laws and regulations change frequently. Always consult a qualified CPA before making financial decisions. Insight Accounting CPA Professional Corporation accepts no liability for decisions made based on these estimates. For personalized advice, call (905) 270-1873.
Bader A. Chowdry, CPA, CA, LPA
$6.7M+ in Tax Matters Resolved | 5-Star Google Reviews
Frequently Asked Questions
When should I start year-end tax planning?
Ideally, start in October or November to give yourself time to implement strategies. Many tax-saving moves (RRSP contributions, capital loss harvesting, equipment purchases) must be completed by December 31 to count for the current tax year. CPAs in Mississauga and the GTA recommend quarterly reviews to stay ahead of deadlines and maximize savings.
What’s the most common year-end tax mistake Ontario business owners make?
The biggest mistake is not optimizing the salary vs dividend mix before year-end. Many Ontario business owners default to dividends to avoid payroll taxes, but this eliminates RRSP contribution room and CPP credits. A proper analysis by a Toronto-area CPA often reveals that a balanced approach saves more tax and builds better retirement security. Insight Accounting runs these scenarios for Mississauga clients every November.
Can I still make RRSP contributions for 2026 after December 31?
Yes! You have until the first 60 days of 2027 (typically March 1, 2027) to contribute and claim the deduction on your 2026 tax return. However, if you’re a business owner paying yourself a bonus, that bonus must be PAID by December 31, 2026 to create the RRSP room for your 2026 return. Ontario CPAs see this confusion frequently — consult a professional to time it correctly.
What records should I keep for CRA audits in Ontario?
The CRA requires you to keep supporting documents (receipts, invoices, bank statements, contracts) for 6 years from the end of the tax year they relate to. For corporations in Mississauga and across Ontario, keep minute books, shareholder agreements, and financial statements indefinitely. Digital records are acceptable if they’re accessible and readable. Insight Accounting CPA helps GTA businesses implement cloud-based record retention systems that survive audits.
How can Insight Accounting help with my year-end tax planning in Mississauga?
Insight Accounting CPA offers comprehensive year-end tax reviews for individuals and businesses across Mississauga, Toronto, and the GTA. We analyze your income, expenses, investments, and business structure to identify missed deductions, optimize salary/dividend splits, and implement multi-year tax strategies. Our ex-KPMG CPAs have resolved $6.7M+ in tax matters and earned 5-star Google reviews from Ontario clients. Book your free consultation at (905) 270-1873 — we’ll find savings this checklist can’t.
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