Year-end tax ideas – part 5
In addition to those ideas outlined over the past few weeks, here are a smattering of other ideas to consider when wrapping up year-end tax planning considerations. • Tax shelters
You may consider purchasing a tax shelter such as limited partnership units or flow-through shares before year-end in order to receive tax deductions.
A tax shelter is generally structured so that the expenses incurred by the tax shelter in the first few years are flowed directly to you so that you may deduct them against any of your taxable income. As with any investment, the investment potential of the tax shelter and not just the initial tax savings should be considered when deciding whether to invest in a tax shelter. • Moving within Canada
The marginal tax rates may vary significantly by province or territory.
For example, combined with the federal rate, the top marginal tax rate in Nunavut is 44.5 per cent and the top combined rate in Nova Scotia is 54.0 per cent. Since you are subject to tax based on your province or territory of residence on Dec. 31, if you are moving to a province or territory with a lower tax rate, consider moving prior to year-end.
Since your place of residence at yearend is what matters, if you are moving to a province or territory with a higher tax rate, consider delaying your move until early 2018. • Interest on family loans
If you set up a spousal loan or funded a