{"id":3825,"date":"2025-10-29T14:56:48","date_gmt":"2025-10-29T14:56:48","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/crescowealthmanagement\/?p=3825"},"modified":"2025-10-29T14:56:48","modified_gmt":"2025-10-29T14:56:48","slug":"in-brief-tax-planning-before-year-end","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/crescowealthmanagement\/2025\/10\/29\/in-brief-tax-planning-before-year-end\/","title":{"rendered":"In Brief: Tax Planning Before Year-End"},"content":{"rendered":"<p class=\"BasicParagraph\" style=\"margin-top: 4.3pt\"><span lang=\"EN-US\" style=\"font-size: 12pt;line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">Despite rising living costs, the share of income spent on necessities has declined. In 1976, households spent about 43 percent of their income on shelter, food and clothing. Today, this has fallen to around 35 percent. What has risen is the share we pay to taxes. In 2025, the average Canadian family paid 43.1 percent in taxes.<sup>1<\/sup> Put differently, if taxes were paid upfront, the first 158 days\u2019 earnings would go entirely to the government!<\/span><\/p>\n<p class=\"BasicParagraph\" style=\"margin-top: 4.3pt\"><span lang=\"EN-US\" style=\"font-size: 12pt;line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">This is why tax planning continues to be an important part of wealth planning. As we approach the final months of the year, here are a handful of actions, in brief, that may help improve your tax position in 2025:<\/span><\/p>\n<p class=\"BasicParagraph\" style=\"margin-top: 4.3pt\"><span style=\"font-size: 12pt\"><b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">Split income. <\/span><\/b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">This may include electing to split eligible pension income with a spouse or paying reasonable salaries to family members for services provided to your self-employed business.<\/span><\/span><\/p>\n<p class=\"BasicParagraph\" style=\"margin-top: 4.3pt\"><span style=\"font-size: 12pt\"><b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.35pt\">Contribute to your RRSP.<\/span><\/b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.35pt\"> You still have 60 days after the calendar year end to make contributions for the 2025 tax year, but the earlier you contribute, the greater opportunity for tax-deferred growth.<\/span><\/span><\/p>\n<p class=\"BasicParagraph\" style=\"margin-top: 4.3pt\"><span style=\"font-size: 12pt\"><b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">Consider tax-loss harvesting.<\/span><\/b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\"> Realize capital losses to offset capital gains. Please contact the office well before the end of the year to enact this strategy to allow for sufficient settlement time.<\/span><\/span><\/p>\n<p class=\"BasicParagraph\" style=\"margin-top: 4.3pt\"><span style=\"font-size: 12pt\"><b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">Give charitably.<\/span><\/b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\"> Gifting publicly-traded securities to a registered charity may offer tax benefits, including eliminating the capital gains tax liability on appreciated securities. <\/span><\/span><\/p>\n<p class=\"BasicParagraph\" style=\"margin-top: 4.3pt\"><span style=\"font-size: 12pt\"><b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">Claim the pension income tax credit.<\/span><\/b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\"> If you are 65 years or older and don\u2019t have eligible pension income, consider opening a small RRIF or purchasing an annuity.<\/span><\/span><\/p>\n<p class=\"BasicParagraph\" style=\"margin-top: 4.3pt\"><span style=\"font-size: 12pt\"><b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">Withdraw from the TFSA before year-end. <\/span><\/b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">If you plan to withdraw, consider doing so before the year-end. Contribution room resets at the start of the calendar year, so withdrawals after December 31, 2025, won\u2019t restore contribution room until January 1, 2027.<\/span><\/span><\/p>\n<p class=\"BasicParagraph\" style=\"margin-top: 4.3pt\"><span style=\"font-size: 12pt\"><b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">Make RESP contributions.<\/span><\/b><span lang=\"EN-US\" style=\"line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\"> While it won\u2019t save tax, you may potentially benefit from the CESGs for 2025.<\/span><\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-medium wp-image-3827\" src=\"https:\/\/advisor.wellington-altus.ca\/crescowealthmanagement\/wp-content\/uploads\/sites\/35\/2025\/10\/Screenshot-2025-10-29-084635-300x262.png\" alt=\"\" width=\"300\" height=\"262\" srcset=\"https:\/\/advisor.wellington-altus.ca\/crescowealthmanagement\/wp-content\/uploads\/sites\/35\/2025\/10\/Screenshot-2025-10-29-084635-300x262.png 300w, https:\/\/advisor.wellington-altus.ca\/crescowealthmanagement\/wp-content\/uploads\/sites\/35\/2025\/10\/Screenshot-2025-10-29-084635.png 569w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<p class=\"BasicParagraph\" style=\"margin-top: 4.3pt\"><span lang=\"EN-US\" style=\"font-size: 12pt;line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.25pt\">For more information or ideas, please contact the office. <\/span><\/p>\n<p class=\"BasicParagraph\" style=\"text-indent: -7.2pt;margin: 2.15pt 0cm .0001pt 7.2pt\"><span lang=\"EN-US\" style=\"font-size: 12pt;line-height: 120%;font-family: 'Open Sans', sans-serif;color: #282829;letter-spacing: -0.35pt\">1. https:\/\/www.fraserinstitute.org\/commentary\/canadian-families-must-work-nearly-half-year-pay-taxes<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite rising living costs, the share of income spent on necessities has declined. In 1976, households spent about 43 percent of their income on shelter, food and clothing. Today, this has fallen to around 35 percent. What has risen is the share we pay to taxes. In 2025, the average Canadian family paid 43.1 percent [&hellip;]<\/p>\n","protected":false},"author":129,"featured_media":3828,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>In Brief: Tax Planning Before Year-End - Cresco Wealth Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advisor.wellington-altus.ca\/crescowealthmanagement\/2025\/10\/29\/in-brief-tax-planning-before-year-end\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In Brief: Tax Planning Before Year-End - Cresco Wealth Management\" \/>\n<meta property=\"og:description\" content=\"Despite rising living costs, the share of income spent on necessities has declined. 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