Traditionally, December is the festive season. You create magnificent feasts and run from store to store looking for the gifts that will be placed under the tree. December is also the time to think of others: the left-behind, the excluded, those who suffer…. The 24h Tremblant is a good example of this.

But well-organized charity begins at home. December is the last month for gathering all the tax receipts that attest to your generosity and optimize your taxable revenue.

Charitable gifts

Consider giving securities listed on the stock exchange. As a gift in kind, it will not be liable for capital gains tax. An official tax receipt equivalent to the fair market value of the security on the day of subscription is given to the donor. Check that the charitable organisation selected permits a gift in kind and be sure observe the minimal deadline required for the gift to be eligible in 2019.

Sales at a loss for tax reasons

During 2019, if gains have been realised on the sale of financial securities, it’s a good time to screen your portfolio to check whether it doesn’t include securities that are irretrievable losers. Why not sell them (before December 27, 2019) to reduce your capital gain?

Something worth knowing: any loss not used for the current year can be carried back to the three years preceding or carried over to the three years following.

There are a number of strategies that you can adopt, in particular: maximize your RESP (registered education savings plan), analyse the size of the distribution of your non-registered mutual funds, purchase funds offering a tax shelter, etc. I invite you to consult me to obtain a complete document on the subject.

In the meantime, see you soon on the slopes!