Golombek gives you 4 year-end tax tips

Now is the time to use tax credits only available until Dec. 31, says CIBC tax planner Jamie Golombek.

More than three-quarters of Canadians won’t even think about their taxes until it’s too late to realize the savings, a CIBC poll finds. As well, as many as two-thirds of Canadians are in the dark about how to reduce their 2016 tax bill.

1. Pre-pay any 2017 Children’s Arts & Fitness Activities

There won’t be childrens’ arts or fitness tax credits in 2017, so pay for next year’s activities before Dec. 31 to take advantage of the final year of credits. This could save clients up to $250 of expenses on artistic or cultural activities and up to $500 of expenses on physical activity programs.

Read: Who will benefit from new family tax regime?

2. Renovate for home accessibility

The new Home Accessibility Tax Credit will permit a claim equal to 15% of up to $10,000 for renovations to assist seniors and those eligible for the disability tax credit to be more mobile or functional in their home.

Read: Despite tax changes, income splitting can still benefit clients

3. Stock up on school supplies

The new School Supply Tax Credit will help compensate teachers and early educators for school supply expenses they incur in the year.

Read: Essential tax numbers

4. Rebalance Corporate Class Mutual Funds

Currently, switching between corporate class mutual funds isn’t taxable, but starting Jan. 1, 2017, new federal rules mean it will be. Rebalance portfolios by the end of the year to avoid triggering a taxable disposition in the new year.

Read: Finance gives corporate-class shareholders a break