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It' Action Time
It’s action time. We talk about being mentally prepared, now is the time to get physically prepared to set yourself up for Smart Tax planning.
This is also that time of year where talented and creative people share their creations in winter fairs. Check out Winter Markets in Calgary and Victoria
The Market Ethos discusses that markets are moving, read all about it in the article below.
Harness Investment Management
Is This The Start?
On Friday the S&P and TSX both dropped below their 50-day moving averages for the 1st time since the tariff sell-off in April. Is this the start of the correction everyone is waiting for? Lots of bearish headlines and market breadth is weak, but a potential resolution to U.S. government shutdown is certainly helping this morning. This Ethos we share our thoughts on how this has become an AI news driven market, avoid doom scrolling headlines and that we would need a bigger drop to get more excited.
As we step into 2026, now is the perfect time to take charge of your financial and tax planning. Thoughtful, proactive steps can help reduce your tax bill, keep more of your hard-earned money, and strengthen your long-term financial well-being. Whether you’re preparing for retirement, saving for a home, or building wealth for your future, these ten strategies can help you make confident, tax-efficient decisions this year.
1. Maximize Your Tax-Free Savings Account (TFSA)
The 2025 TFSA contribution limit is $7,000, and if you’ve been a Canadian resident since 2009 and have never contributed, your total contribution room could be up to $102,000. The TFSA allows your investments to grow tax-free, and withdrawals are also tax-free — giving you flexibility to use these funds for short-term goals or long-term savings without triggering tax consequences.
2. Use Tax-Loss Selling to Offset Capital Gains
If you’ve realized capital gains this year, you can sell investments at a loss to offset those gains and reduce your taxable income. You can even carry those losses back up to three years. Just remember the superficial loss rule — you can’t repurchase the same or identical security within 30 days if you want the loss to count.
3. Open a First Home Savings Account (FHSA)
The First Home Savings Account (FHSA) combines the best features of an RRSP and TFSA, helping first-time homebuyers save more effectively. You can contribute up to $8,000 per year, to a lifetime limit of $40,000. Contributions are tax-deductible, and qualifying withdrawals for your first home are completely tax-free. This is a fabulous way to support your young adults to purchase a home and maximize your dollars.
4. Give Back and Save Through Charitable Donations
Giving feels good — and it’s also smart tax planning. Donating to registered charities generates tax credits that reduce your overall bill. If you donate publicly traded securities, you avoid paying capital gains tax and still receive a receipt for the full market value. You can also pool donations with your spouse to surpass the $200 threshold for a higher credit rate.
5. Deduct Eligible Investment Expenses
Some investment-related costs may qualify as tax deductions, such as:
· Interest on investment loans (non-registered accounts)
· Investment counseling fees (non-registered accounts)
· Financial planning fees (if billed separately from investment management)
These deductions can make your investment strategy more efficient and reduce your taxable income.
6. Apply to Reduce Tax Deductions at Source
Rather than waiting for a tax refund, you can improve your cash flow throughout the year. By submitting CRA Form T1213 (or TP-1016-V in Quebec), you can request that your employer withhold less tax from each paycheck — giving you access to your money sooner and smoothing out your cash flow. One must use caution as it may result in a income tax payable.
7. Make a Final RRSP Contribution Before Age 71
Turning 71 in 2026 You’ll need to convert your RRSP to a RRIF or annuity before December 31. Before doing so, consider making one last RRSP contribution to lower your taxable income and maximize your retirement savings.
8. Split Pension or RRIF Income with Your Spouse
For those aged 65 and older, income splitting is a powerful way to reduce your household tax bill. You can allocate up to 50% of eligible pension or RRIF income to your spouse or common-law partner, potentially preserving valuable tax credits and reducing or even eliminating the Old Age Security (OAS) clawback.
9. Build Long-Term Security with a Registered Disability Savings Plan (RDSP)
For individuals or families eligible for the Disability Tax Credit, the RDSP offers unmatched long-term benefits. Depending on income, the government may contribute up to $70,000 in grants and $20,000 in bonds over a lifetime. Contributions grow tax-free, helping create financial stability for the future.
10. Contribute to a Registered Education Savings Plan (RESP)
If you’re saving for your child or grandchild’s education, an RESP can be a smart tax-advantaged tool. Your contributions grow tax-deferred, and the Canada Education Savings Grant (CESG) adds 20% — up to $500 per year and $7,200 per child (total). Lower-income families may also qualify for additional government support, helping every dollar you save go further.
Take Action for a Tax-Smart 2025
The best tax strategy is a proactive one. Small, intentional actions taken today can lead to significant financial advantages tomorrow. Timing is important as these tasks need to be actioned by December 31, 2025.
If you want to ensure your 2025 plan aligns with your goals and helps you minimize taxes effectively, let’s connect. Together, we can create a plan that supports your financial mindset — and your future.
Own your financial mindset
tel: 403.457.2290 // 250.217.7533
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