In this video, I will highlight seven strategies that you can use right now to maximize your tax refund in 2023! Learn how to minimize your 2022 tax liability and maximize your tax refund.

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|TFSA (Tax Free Savings Account) – Calculating income Tax Canada|
•2020 TFSA limit = 6000, if no contributions than max limit is $69,500 for those 18 and older since 2009
oDownside: beware of capital gains tax on your Canadian Tax Return,
oUpside: Investments moved to the TFSA will grow tax free avoid income tax canada
oChance to tax-loss harvest and the move money to TFSA if room available
Tax-loss only available under non-registered accounts but not under TFSA
•TFSA Withdrawals increase future contribution room based on the value of the withdrawal itself
Tax-loss selling – Canada tax calculation
•Popular year-end strategy to maximize tax refund and reduce capital gains tax on your income tax Canada
•Main advantage is to realize tax benefit for selling an underperforming investment before filing a tax return in Canada
•Adjusted cost base or (ACB) is a combination of the price you paid for the stock or asset plus fees, commissions and other charges associated with buying the stock or other asset
•You can offset any capital gains you have in 2020, or you can carryback into the last 3 years if you don’t have any capital gains this year and get a tax refund from a prior year
•Superficial loss, happens when you or an affiliated taxpayer (i.e. spouse) buy an identical asset within 30 days of you selling the asset, if this happens, Canadian CRA will deny your capital loss claim on your Canadian Tax Return impacting your Canada tax calculation

|Deferring realization of Capital Gain – 2020 tax returns Canada|
•Sell an asset (mutual fund, ETF, Stock, etc), and the market value is higher than adjusted cost base then you may have capital gains tax when calculating income tax Canada
oTax on 50% of the realized gain (Canada tax calculation)
oIf asset is in an RRSP, TFSA or other registered account, then does not apply (income tax Canada)
oOnly applicable for a non-registered account (tax returns Canada)
•By waiting until Jan 1, 2021 to sell assets, won’t have to pay capital gains tax on your income tax Canada until taxes are due on April 30, 2022

|RRSP (Registered Retirement Savings Plan)|
•2020 RRSP contribution can be made until March 1, 2021
•Sooner you invest in RRSP, more time you have to grow assets tax-free and minimize Canadian tax
•If you work with a CPA, estimate your potential taxes for 2021, contributing more to your RRSP if you have room, and increase your tax refund when calculating income tax Canada

|RESP Contribution (tax tips)|
•Lifetime contribution limit for Registered Education Savings Plan is $50,000 does not impact tax returns Canada
•Just like RRSP, contribution & grant within RESP grow on a tax deferred basis and minimize Canadian Tax
•Main purpose of RESP to fund child’s education cost in the future, tax-deferred (Canada tax calculation)
Charitable Donations – (2020 tax return)
•When you make a charitable donation in any tax year you receive a donation tax credit on your income tax return
•You have until Dec 31, 2020 to make your donation count towards the tax credit for 2020 to get a tax refund
•Donation of equities with unrealized capital gains can be very tax efficient, exempt from capital gains tax and receive a tax credit for the market value of your donation on your tax returns canada
•If you’ve ever heard of the term “Donor-advised funds”, this is where this strategy leads

|Timing of Investment Purchases|
•if you are investing in Mutual Funds or ETFs late into a calendar year especially around December in a non-registered account
•Certain ETFs and Mutual funds have annual distribution dates instead of quarterly or monthly distribution dates so check before doing online tax filing

Disclaimer: This channel is for education purposes only and opinions expressed in this video are based on personal research and should be treated as such. These are not instructions, suggestions, nor directions as to how to handle your money. The facts and figures presented in this video are up-to-date based on the recording. These may have changed based on when you watch the video Please, always do your own due diligence!

#IncomeTaxCanada #TaxTips #CanadianTaxes

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