10 Things to Do Before Dec.31 to Pay Less Taxes | Canadian Year-End Tax Saving Tips | Reduce Taxes

[@katlm-cpa]

Do you have any questions? Ask me below!

[@KP-eu7sn]

Hi Kat You mention withdrawal from FHSA in 2024 Dec close account by Dec 2025. So do we can add $8000 in FHSA in 2025 and than close it ? Do we get tax deduction advantage for 2025?

[@katlm-cpa]

@ You only get a tax deduction for contributions made before your first qualifying withdrawal. So if you delay your withdrawal from December 2024 to January 2025, you’ll get the 2025 contribution room and can deduct your contributions when filing your 2025 return.

[@KP-eu7sn]

@@katlm-cpa so I am planning to buy house before 31 Dec and made $8000 deposit on 2 Jan 2025 and withdraw money on 15 Jan 2025. Do I get advantage of tax saving?

[@katlm-cpa]

@@KP-eu7sn you only get the tax advantage if you don’t make a qualifying withdrawal before your contribution on Jan.02. In other words, if you withdraw money in December, your $8k contribution on Jan.02 is not tax deductible.

[@KP-eu7sn]

@@katlm-cpa I already put $8000 for 2024 but if I deposit $8000 on 2 Jan 2025 and withdraw on 15 Jan 2025. Do I get 2025 tax advantage? Because I got possession on around 20 December so I have to withdraw money within 30 days( around 15 Jan).

[@gingerkilkus]

I disliI dislike taxes for one main reason: the government requires individuals to calculate their own taxes and imposes heavy penalties for mistakes. While I have no problem paying taxes as a Canadian citizen, it seems strange to me that I have to do the paperwork when the government already has all the necessary information. ke taxes for one main reason: the government requires individuals to calculate their own taxes and imposes heavy penalties for mistakes. While I have no problem paying taxes as a US citizen, it seems strange to me that I have to do the paperwork when the government already has all the necessary information.

[@fadhshf]

I don't regret the financial mistakes I've made in the past, as they've all taught me valuable lessons. However, my biggest misstep was planning my finances without consulting a licensed financial advisor.

[@hasede-lg9hj]

I sought the guidance of a financial counselor, and as I near retirement, their advice has proven invaluable. I was initially concerned that compound interest on index funds wouldn’t suffice since I started investing later. It's quite amusing to realize that I’ve outperformed colleagues with more investment experience, having gained over $386k tax-free.

[@lowcostfresh2266]

I did seek the help of a financial counselor, and as I approach retirement, their advice has been invaluable. I initially worried that compound interest on index funds wouldn’t be enough since I started late. It’s amusing to see that I’ve outperformed colleagues with more investment experience, having gained over $386k tax-free

[@LucasBenjamin-hv7sk]

This is definitely significant! Do you have any recommendations for professionals or advisors I could contact? I really need guidance on proper portfolio allocation.

[@lowcostfresh2266]

I take guidance from an advisor Rebecca Lynne Buie. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@hharpreet100]

Hi kat So i have used 35000 from the HBPlan to buy a house, i am making these yearly payments when i file my tax returns. 1) are those payments being added to my rrsp contribution room, where can i see that. 2) can i pay the full left amount for HBP if yes, how? 3) if i have been contributing to govt pension fund, is it using my rrsp contribution room or the govt pension is different and wont affect my rrsp contributions.

[@katlm-cpa]

Hi Harpreet! 1) Your HBP repayments don't impact your RRSP deduction limit (aka contribution room). 2) You can repay the full amount any time. To make repayments, you simply make contributions to your RRSP. Then, at tax time, you fill out Schedule 7 to designate the amount as a HBP repayment. 3) Do you mean the Canada Pension Plan? Or a pension plan with your employer?

[@hharpreet100]

@katlm-cpa pension plan with employer. I am asking about the government pension plan offered by a government job, i work in.

[@katlm-cpa]

@ OK, then yes, your contributions (and your employer’s contributions if they are matching) to that plan count towards your RRSP room.

[@hharpreet100]

@@katlm-cpa sure thank you for the information. I really liked Your videos They are so informative.

[@katlm-cpa]

@@hharpreet100 you’re welcome, glad you liked them!

[@DynamoCnc]

Thank you for the helpful information! I have a quick question: My company’s insurance covers 90% of my medical expenses, such as dental and prescription drugs. How should I calculate my actual out-of-pocket expenses in this case? Could you please clarify?

[@katlm-cpa]

You can only claim the portion you actually paid (10% in this case), not the portion which was covered by the insurance. If you pay a premium for this insurance, that amount counts as a medical expense. It should be on your T4 slip at the end of the year. If you use software to file your taxes, it should automatically pull the information from your T4 and put it with your medical expenses.

[@DynamoCnc]

@ I pay for universal life insurance monthly. Can I include this as a deductible expense when filing my taxes? Could you please confirm? Thank you for replying back

[@katlm-cpa]

Life insurance is not tax deductible, except in very specific circumstances (only for business owners in particular situations).

[@kellyhou9594]

If you are not familiar with tax, it is best to use an accountant to help you. There are free tax clinic or you can pay for someone to do the job. You actually end up saving money in the end because accountant knows how to save you tax.

[@mkh9164]

Is Superficial Loss rule in Cda apply only on sell and buy in the same year only ?. I understand if I sell a stock at a loss and then buy it back within 30 days in the same year, then I would not be able to claim the capital loss due to Superficial Rule. However, if I sell stock on Dec 28 2024 at a loss and then buy it back next year in Jan 5, 2025 (within 30 days). Can you claim the capital loss of Dec 20, 2024 ?. Appreciate your help.

[@katlm-cpa]

@@mkh9164 the superficial loss rule is based on calendar days, not years. So it would still apply in your example.

[@mkh9164]

@katlm-cpa Thank you..

[@PresidentJoseph]

This video was great and very informative. Thank you!

[@katlm-cpa]

You're very welcome! Thank you for the feedback! :)

[@vivekramachandran5634]

Comprehensive video. Glad that i found your channel. Thank you

[@katlm-cpa]

Glad you liked it! Thank you for the feedback!

[@AlejoO-ps1uv]

Hi Kat. Could you explain what the benefit is of keeping the FHSA open in 2026.? I understand that I cannot make any more contributions to my FHSA once the first withdrawal is made.

[@katlm-cpa]

@@AlejoO-ps1uv Technically, you CAN make contributions, you just can’t deduct them on your tax return. The benefit would mostly be for people who didn’t need to use up all of the money in their FHSA for the home purchase and want to keep earning tax-sheltered investment income on the funds a little longer. You also get to avoid paperwork for an extra year🙃

[@RobinDhillonUxbridge]

Very clearly explained. Well done!

[@katlm-cpa]

Thank you!

[@abhishakegoyal24]

Amazing Video! Nicely explained. Ty :)

[@katlm-cpa]

Thanks for the feedback, glad you liked it!

[@snowflake9838]

Wow! Very informative videos. Thank you.

[@katlm-cpa]

@@snowflake9838 Glad you liked it, thanks for the feedback!

[@JuanaMeloUnicEducation]

Great info, thanks for putting this together.

[@katlm-cpa]

You're welcome! Thanks for the feedback!

[@reyhanhussain5922]

This was very helpful. Thank you.

[@katlm-cpa]

My pleasure! Thanks for the feedback! :)

[@guiders14]

Great job, nicely explained! Liked and subscribed!

[@katlm-cpa]

Thank you!!

[@SS-bg6ht]

How many years can medical expenses be carried forward?

[@katlm-cpa]

Medical expenses cannot be carried forward. However, you can choose to claim the expenses incurred in any 12-month period that ENDS in the current year. For example, if you had a lot of expenses between October 2023 and September 2024, you could choose to claim the expenses for that period on your 2024 tax return (as long as they weren't previously claimed on your 2023 return).

[@actng]

so you can open a RESP in your own name?? what's the catch with withdrawing?

[@katlm-cpa]

@@actng I didn’t mention that in the video but yes, you can. There’s no “catch”, works the same as if you had opened it for a child. You can withdraw your own contributions tax-free. Income earned within the RESP has to be withdrawn through an EAP (to pay for schooling). This usually ends up being tax-free because the child receiving it doesn’t have any other income. If you open the RESP for yourself as an adult and also have other income when withdrawing an EAP, then you would be taxed at your marginal tax rate.

[@snowflake9838]

Kat, I have a margin account with Questrade. I was thinking of selling a stock then buying another. Will I be taxed on any capital gains even though I will use that money to buy another stock instead of making a withdrawal?

[@katlm-cpa]

@@snowflake9838 unfortunately, yes. Margin accounts are not tax sheltered so any transactions that occur within them are taxable (regardless what you use the money for).

[@charmipatel6208]

Hi Kat, I contributed $4000 to my FHSA in 2023. For 2024, my total contribution room is $8,000 (2024 limit) + $4000 (unused 2023 room), making it $12000. I’ve already contributed $8,000 in 2024 and want to invest more since I still have $4000 of contribution room. Do I need to specify that this additional investment is against my 2023 limit? Thanks!

[@katlm-cpa]

Hi Charmi! You don't need to specify which year the contribution room is from when contributing to your FHSA account. Just be sure to fill out Schedule 15 when filing your tax return.

[@deep1187]

Hi Kat, my FHSA contribution in 2023 was 100. (I opened it in Dec to get the limit) so for 2024, my limit is 8000+7900. I already invested 8000 in 2024. I want to invest more as my limit has room for 7900. Do I need to do anything while investing further? Like, this is against 2023 limit. Or I can invest as if my 2024 limit is increased to 15900?

[@katlm-cpa]

Hi! If you opened the account in 2023 and already invested $8,100, you can contribute up to $7,900 before Dec.31st. You'll get an additional $8,000 of contribution room in January.

[@itayyahel]

Allow me to congratulate you on your new channel.❤

[@katlm-cpa]

@@itayyahel thank you!

[@karar302]

How to reduce taxes on Crypto assets?

[@katlm-cpa]

@@karar302 The same way you reduce taxes on other types of income. Are you earning business income (day trading) or are you holding the assets to sell them for profit?

[@Animegami]

best way is probably to max our your rsp.

[@katlm-cpa]

@@Animegami possibly. That also depends on how much income we’re talking about, whether it’s business income or capital gains, if the gains are realized or not, etc.

[@Animegami]

@@katlm-cpa agreed. Many factors that does into play.

[@mkh9164]

Is Superficial Loss rule in Cda apply only on sell and buy in the same year only ?. I understand if I sell a stock at a loss and then buy it back within 30 days in the same year, then I would not be able to claim the capital loss. However, if I sell stock on Dec 20 2024 at a loss and then buy it back next year in Jan 5, 2025 (within 30 days). Can you claim the capital loss of Dec 20, 2024 ?. Appreciate your help.

[@JourneyNewborn]

Thank you for this concise and well delivered clip. I am wondering if my medical expenses are covered by insurance, can I still claim them on taxes ?

[@katlm-cpa]

@@JourneyNewborn you can only claim the portion that isn’t reimbursed by your insurance. The premiums you pay for the insurance count as medical expenses though.

[@mgalvez8219]

@@katlm-cpai didn’t know this, can I still claim the monthly fees that I’m paying from my work from previous years?

[@katlm-cpa]

@@mgalvez8219 If you use a software to file your taxes, it should have pulled the information directly from your T4, Box 85 (so you likely already claimed those amounts). If not, you would need to file T1 adjustments for all the years you didn't claim (it might not be worth it depending on the amount).

[@DynamoCnc]

I pay for universal life insurance monthly. Can I include this as a deductible expense when filing my taxes? Could you please confirm? Thank you for replying back Great information!!

[@kiranb7125]

Universal Life insurance premiums are not tax deductible as per my understanding

[@katlm-cpa]

@@DynamoCnc see my response on your other comment 🙂

[@AJEntertainment-y4m]

If myself and my spouse open RESP for the same kid, are we both eligible for the CESG? Between great informative video. All the best for your channel.

[@katlm-cpa]

@@AJEntertainment-y4m thank you! Your child can be the beneficiary of more than one RESP, but the most you can contribute is still $50k per child (all RESPs combined). Same for the CESG, the total you will get across both RESPs is still $500 per year up to a lifetime maximum of $7,200.

[@thyagofurtado]

AI bot, likely one out of many by someone content farming from another country. Doubtfully an accountant, doubtfully "Kat" lol, doubtfully a Canadian.

[@katlm-cpa]

@@thyagofurtado so because someone decides to make a faceless channel, you assume they are an AI bot? FYI, I am a human being who simply wants to keep her identify private while still providing valuable information to others. I write the scripts based on research, personal and professional experience, use an AI voice generator for the audio, and PowerPoint to make the video. If you don’t like it, you’re free to move on to the next channel.

[@petert1692]

Don’t worry, when PP gets in he will reduce most taxes and increase all services. He’s an expert career politician sawhorses knows a lot. Just ask him. 😂😂😂😂😂😂😂😂😂

[@jacobgoldstein6759]

I'm concerned that you don't understand that taxes pay for services. Decreasing taxes will always equal less services. You might've been sarcastic though

[@banqsterz8160]

​​@@jacobgoldstein6759Oh my, so confident yet so wrong. Not necessarily. It is possible to lower taxes while keeping the same budget. It would lead to a bigger deficit, but it is still possible. In fact the government has been doing that for multiple decades now (the point of the OP)

[@cbraun406]

@@jacobgoldstein675930 % of taxes go to services. The rest is wasted.