TORONTO, Dec. 1, 2016 /PRNewswire/ -- 2016 has been a year of surprises. No one outside the U.K. thought that country would vote to leave the Eurozone. Yet it did. No one outside the U.S. thought Donald Trump would get elected. Yet he did. Everyone on Bay Street thought a Trump victory would crash the markets. So far, the markets are at all-time highs. It seems opposites were the norm in 2016.
With that in mind, Coach Roel Sarmago offers three weird "opposite" tax-tips for Canadians that you won't hear from your banker. Before the year is through, invite Coach Roel to share why you may want to consider:
- Withdrawing from—and not contributing to—your Tax-Free Savings Account.
- Withdrawing from—and not contributing to—your Registered Retirement Savings Account.
- Starting a business.
Withdraw From Your TFSA
If you need the money for something else, you can withdraw or de-register funds from your TFSA before December 31, Coach Roel says. You automatically regain that contribution room on January 1.
Withdraw from Your RRSP
If you know you will be in a significantly higher tax bracket next year, it might be a good idea to de-register some of your RRSPs before December 31. Coach Roel explains that you can re-contribute to your RRSPs after January 1 when you are in a higher tax bracket, giving you a larger tax deduction.
Capital Acquisitions for Your Business
Don't have a business? If you start one before the ball drops at midnight on December 31 you too can take advantage of this next cool tax tip, Coach Roel advises.
If you are planning to buy a new computer, delivery truck or other equipment that costs $500 or more for your business, be sure to buy it before December 31. You can write off a whole year's worth of usage, even though the purchases are just a few days old. This legitimate tax deduction is called depreciation, Coach Roel says.
CREDENTIALS: Coach Roel developed his unique views on personal finance after achieving massive success in the mutual fund industry and leaving it all behind to become a successful real estate investor, options trader and entrepreneur while maintaining his CFP designation. He is the author of Undiscovered Riches: How to Find Your Hidden Wealth. Coach Roel has been featured by Yahoo Finance, MoneySense Magazine, Fox News Radio and talk radio shows in the U.S.
AVAILABILITY: Toronto, North America by arrangement, and via telephone
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SOURCE Coach Roel Sarmago