Tax season is fast approaching and as you scramble to collect receipts, bills and slips, financial advisors will tell you the same thing – planning should be a year-long endeavour. Having said that, though, there are some valuable last-minute tips that could help you reduce your income tax costs.

These are merely suggestions, so be sure you consult with your advisor before making any decisions.

One of the biggest home improvement plans to come out of the government is the Home Renovation Tax Credit. This credit can only be applied for the 2009 taxation year on eligible expenditures. But note, you must have incurred these expenditures up to and including January 31st, 2010 in order to apply them to your 2009 tax return. The credit, by the way, is only available for the 2009 taxation year.

Novel tax strategies include your children. Did you know that you can file a tax return for children with “earned income” in order to start accumulating RRSP room? You can contribute to an RESP to start saving for your child’s education, and may be eligible for a government grant. Keep receipts for fees paid for your child under the age of 16 for enrolment in eligible physical activity programs and you might be able to take advantage of available fitness tax credits.

When it comes to claiming charitable donations, combine all donations for you and your spouse and claim them on one tax return. If your total donations are less than $200, consider carrying them forward up to five years.

These past couple of years have been challenging for everyone, but economists are telling us that better days are ahead; that the recession is over and that we will begin to see modest growth in jobs and family income. So begin your planning now for 2010 in order to enjoy maximum returns next April.

If your financial plans this year include buying or selling a home, choosing a Broker who will get the most for your home quickly will reduce the hassle of selling and put more money in your pocket. Not only is Dan Cooper Royal LePage’s #1 Team in Canada, but Royal LePage outpaced all other firms in volume sold in Oakville last year.

Dan Cooper is an award winning Broker with Royal LePage Real Estate Services Ltd., Brokerage – the Number 1 Royal LePage Team for Canada in 2009. He can be reached at 905.338.3737, direct line at 905.849.3303 or through his innovative and interactive website at DanCooper.com. Be sure to catch the Dan Cooper Real Estate Series on DailyWebTV.com. For his free booklet How To Sell Your House For Top Dollar – Fast! or his Guide to Oakville Real Estate, please call the Dan Cooper Team.

This entry was posted on Wednesday, February 3rd, 2010 at 2:21 pm and is filed under Finances, Planning, Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.