The beginning of a New Year is an important time to review and update your financial security planning. This will help ensure that you are well prepared for the upcoming year and beyond. Now is also a good time to review your investment accounts and consider updating/increasing your monthly contribution. Implementing strategies to minimize taxes is an important part of financial security planning, so consider what other things you could be doing to minimize your taxes for this upcoming year. Please contact us to schedule a time to review and update your investment planning, retirement planning and insurance planning to ensure that you are on the right track for 2017.
Please note – it is important that you remember to notify us if you have, or expect to have, any material change in your financial situation in 2017. Please ensure to notify us on any of the following: change in address, employment, income, or marital status; if you are planning to purchase a new home or business; or if you are expecting a baby, a job promotion, or to receive an inheritance or any other important changes.
Following are some important dates and information that you need to know for 2016.
RRSP Deadline: Wednesday March 1, 2017
Please make sure to get your RRSP deposit in prior to this date to help lower your taxes owing for your 2016 income taxes. The contribution limit for 2016 is 18% of your earned income from 2015 (less any pension adjustments) to a maximum of $26,010 plus any unused contribution room from previous years (between 1991 – 2015). Therefore, if you have unused RRSP contribution room, your RRSP deduction limit for 2016 may be more than $25,370. Your eligible contribution limit can be found on your 2015 notice of assessment.
RRSP Loan Deadline: Monday, February 20, 2017
If you are thinking about doing an RRSP loan this year, please contact us as soon as possible so that we can schedule a time to complete the necessary paperwork and submit it prior to the deadline.
Tax Free Savings Account (TFSA):
As of January 1, 2017, Canadian residents aged 18 and older are able to contribute up to $5,500 annually to a TFSA. To recap the annual contribution limit was $5,000 for 2009 through 2012, $5,500 through 2013-2014, $10,000 for 2015 and $5,500 for 2016-2017. Assuming you have never made a contribution, your total eligible TFSA contribution room is now $52,000. If you would like to open a TFSA, top-up your existing TFSA, start or increase your monthly contributions, or switch money that you have invested in a non-registered investment account into your TFSA - please notify us so that we can assist you.
If you would like to confirm what your RRSP or TFSA contribution limit is for this year, you can call CRA directly at 1-800-267-6999 or register online through My Account at: http://www.cra-arc.gc.ca/esrvc-srvce/tx/ndvdls/myccnt/menu-eng.html.
Registered Education Savings Plan (RESP):
The government provides a 20% Canada Education Savings Grant (up to a maximum of $500 annually) for the first $2,500 of annual contributions into an RESP. However, if you did not maximize your annual contributions in previous years, you may be able to catch up missed contributions this year.
T4 and other Tax Slips:
Make sure to watch out for your T5, T3, RSP and other important tax slips in the mail in the coming months.
When can you expect to receive your RRSP tax Receipts:
RRSP Deposits Made Between
Approximate Mailing Date
March 1, 2016 – December 31, 2016
By January 31, 2017
January 1, 2017 – March 1, 2017
By March 17-31, 2017
Deadline to File Individual Income Taxes: on or before April 30th, 2017
Deadline to File Self Employed Taxes: on or before June 15th, 2017. However, if you have a balance owing for 2016, it still must be paid on or before April 30th.
If you need professional assistance with filing your income taxes, need to prepare or update your Will, plan on purchasing a property or refinancing your mortgage this year - please contact us and we would be happy to refer you to an accountant, lawyer or mortgage broker as needed.
2017 Statutory Holidays:
January 1st – New Year’s day
February 20th – Family Day
April 14th – Good Friday
May 22nd – Victoria Day
July 1st – Canada Day
August 7th – Civic Holiday
September 4th – Labour Day
October 9th – Thanksgiving Day
December 25th – Christmas Day
December 26th – Boxing Day
Important Changes to Principal Residence Exemption
The Principal Residence rules allow every family unit to sell one principal residence tax-free per year. All dispositions on or after January 1, 2016, for which the principal residence exemption is claimed, will have to be reported on schedule 3 of an individual’s personal income tax return along with the required filing of form T2091.
1. If you plan on making a lump-sum RRSP, TFSA or RESP deposit, try to do it early in the year so that your investments can grow tax-sheltered for a longer period of time.
2. If you currently pay for your insurance premiums on a monthly basis (life insurance, disability insurance or critical insurance) we recommend that you pay annually instead as you will save approximately 1 month’s premium.
Thank you for keeping Genier Financial Services Inc. in mind with friends and family. Stop in and visit us at 174 Third Ave in Timmins to check out our new renovations or Like us on Facebook. From our family to yours, we wish you all the best in 2017!
Danielle, Clayton, Ryan, Nicole, Natashia, Micheline and Christine