Happy Holidays: Your Last Tax Tip Before the End of the 2014 Year!

Robin, Cherry & Xmas treeI can’t believe that it’s almost the end of the year. I would like to start off with a ‘thank you’ to everyone who has made our lives special this year. Our biggest blessing this year is the arrival of our lovely daughter. She’s made our lives complete.

Ever since Robin’s arrival, our goals and values changed significantly. Instead of spending the money on Christmas gifts for our families and Robin this year, we decided to use the money on the people who are in need.

Basket Baguette picture Last weekend, a group of us gathered together, purchased some groceries and turkeys, organized and delivered our first ever basket baguette to 38 families in the Hamilton Mountain area.

It was powerful – the overwhelming support we got from the volunteers (we actually needed to turn away volunteers), the monetary donation we got from donors who couldn’t come out to help, the reaction we got from the receiving families and the tears we saw from some of our volunteers.

Many of us didn’t know how lucky we are and how much we have, until that day.

Basket Baguette picture with toysOne of our volunteers’ son had an iPhone 6, Beats headphones, and an Xbox on his Christmas wish list this year. He didn’t realize that the value of an iPhone 6 is enough to cover all the turkeys we delivered that day.

He delivered the baskets to two families. He cried.

It is our blessing to be able to give. Our next goal is 100 families for Easter!

Now, let’s get on the final tip before the end of the year.

Did you sell a property this year and incur a large amount of capital gain? Are you worried that you have a large amount of tax liability still outstanding?

One of the common recommendations we make to our clients is to sell any stocks or mutual funds that you have losses before the end of the year.

The capital losses you incurred can be used to offset against the capital gain from the sale of your property.

You may really love the stock or mutual funds that you have and plan to buy them back immediately in the new year, but CRA does not allow the deduction if you purchase the capital property back within 30 days.

Speak to your tax advisor before implementing this strategy. I can potentially save you thousands of taxes!

Until next time, happy holidays!

Cherry Chan, Your Real Estate Accountant

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