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Year-end is a good time to take stock of your finances, to make sure that your affairs are in order and that you have optimized your personal and professional financial situation before it’s time to file your income tax returns. At fdp, we have examined various possible situations and we share with you a series of recommendations that could prove very useful to you. Here is an overview.

Ours experts

Émilie Beaudoin, B.A.A., M. Fisc., Pl. Fin.
Tax Specialist

Alexandre Hunault, LL.M. Fisc., Pl. Fin.
Tax Specialist

For individuals

Your registered savings plans

Your Registered Education Savings Plan (RESP) 

  • December 31, 2020: deadline to benefit from the government grants available in 2020

Your Registered Retirement Savings Plan (RRSP) 

Your Tax-Free Savings Account (TFSA) 

  • $6,000: admissible contributions for 2020

  • If the beneficiary of your RESP account turned 15 in 2020, make sure that a contribution of at least $100 was made each year in this account over the past four years (at a minimum). This way, the contributions you make over the next two years will be eligible for the Canada Education Savings Grant (CESG) and the Québec education savings incentive (QESI). If you have not met this condition, you have until December 31 to contribute at least $2,000 to the RESP account so that the contributions made in the next two years will be eligible for the QESI and the CESG.
  • If you bought a new home in December and you want to avail yourself of the Home Buyers’ Plan (HBP) to withdraw an amount from your RRSP, wait until January 2021 to make this withdrawal. You have up to 30 days after the date of purchase to make the withdrawal which, in this case, will enable you to push back by one year the date on which you will have to start making your HBP repayments.
  • Even though your yearly contributions to your TFSA are cumulative, don’t forget to make regular contributions to this account, preferably early in the year. The reason is simple: your interests accumulate tax-free, which means the sooner you contribute, the less tax you will pay on your investments.
  • If you plan to move soon to another province whose tax rate is lower than the one in the province in which you currently reside, consider doing so before December 31 in order to benefit from the lower rate. For tax purposes, the determination of your province of residence for a given year is based on the province in which you were residing on December 31 of that year.
  • If you turned 71 in 2020 and you earned professional or rental income, you can make a final contribution to your RRSP in December, based on your 2020 income. This excess contribution will be subject to a penalty of 1% per month from the date of the contribution, so it’s important to make it in December.
  • However, if your spouse is younger than you, you can still contribute to his or her RRSP if you earned income during the year, even if you are over the age of 71.
Your Investment Portfolio
  • You could use the losses incurred on the sale of poor performing stocks in your non-registered investment accounts and your corporate investment account to reduce your tax payable on capital gains realized this year (or in the past three years, or on future capital gains). If you still want to keep these stocks in your portfolio, you can always buy them back 30 days after you sold them.
  • You may be considering buying mutual funds at year-end. Be cautious. Some funds pay year-end distributions which are taxable for the current year and which can result in substantial taxes for a short holding period. Inform yourself and wait until the beginning of 2021 to buy securities that have a high tax cost.

The fdp team at your service

Obtain a personalized assessment of your situation by contacting your fdp advisor. With our team of specialists, he can answer your questions and make recommendations on how to use different strategies to improve your financial situation and reduce your tax bill.

Alexandre Hunault, LL.M. Fisc., Pl. Fin.
Émilie Beaudoin, M. Fisc., Pl. Fin.
Tax specialists


Professionals’ Financial – Mutual Funds Inc. and Professionals’ Financial – Private Management Inc. are wholly owned by Professionals’ Financial Inc. Professionals’ Financial – Mutual Funds Inc. is a portfolio manager and a mutual fund dealer which manages the funds of its family of funds and which offers financial planning advisory services. Professionals’ Financial – Private Management Inc. is an investment dealer member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF) which offers portfolio management services.

The information contained herein has been obtained from sources deemed reliable, but we do not guarantee the accuracy of this information, and it may be incomplete. The opinions expressed are based upon our analysis and interpretation of this information and are not to be construed as a recommendation. The tax strategies mentioned in this article may not apply in all cases. For any questions, don’t hesitate to contact your Wealth Management Advisor or your tax specialist, accountant or legal advisor.

For your corporation

Your loans or advances

Your corporation may have granted you a loan or an advance in 2020. Don’t forget that you have to pay back this amount within one year following the end of the fiscal year in which the loan or the advance was made. If you don’t, you will have to declare this amount on your tax return and you will be taxed accordingly.

Your corporation

Certain federal tax measures concerning private corporations have come into force since January 1, 2019.

If you have investments in your corporation, or in one of your management companies, and if the value of these investments is material, or if the income from these investments exceed $50,000, the tax payable on your business income could increase significantly. Note that:

  • For the fiscal years that begin after December 31, 2018, the business limit of $500,000 will be reduced if the investment income of the corporation or of one of your management companies exceeds $50,000.
  • According to your situation, adaptive planning could limit the tax implications for your corporation.

The following factors could be reconsidered:

  • Your compensation method
  • Your types of investments
  • Your insurance

The fdp team at your service

Obtain a personalized assessment of your situation by contacting your fdp advisor. With our team of specialists, he can answer your questions and make recommendations on how to use different strategies to improve your financial situation and reduce your tax bill.

Alexandre Hunault, LL.M. Fisc., Pl. Fin.
Émilie Beaudoin, M. Fisc., Pl. Fin.
Tax specialists


Professionals’ Financial – Mutual Funds Inc. and Professionals’ Financial – Private Management Inc. are wholly owned by Professionals’ Financial Inc. Professionals’ Financial – Mutual Funds Inc. is a portfolio manager and a mutual fund dealer which manages the funds of its family of funds and which offers financial planning advisory services. Professionals’ Financial – Private Management Inc. is an investment dealer member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF) which offers portfolio management services.

The information contained herein has been obtained from sources deemed reliable, but we do not guarantee the accuracy of this information, and it may be incomplete. The opinions expressed are based upon our analysis and interpretation of this information and are not to be construed as a recommendation. The tax strategies mentioned in this article may not apply in all cases. For any questions, don’t hesitate to contact your Wealth Management Advisor or your tax specialist, accountant or legal advisor.

COVID-19 measures

For recipients of tax and economic measures

The governments implemented various measures to help individuals and businesses during the pandemic. If you benefitted from these tax measures during a portion of the year, we want to remind you that the benefits you received are taxable:

Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB)

  • The amounts received are fully taxable.

Canada Emergency Wage Subsidy (CEWS)

  • The amounts received are fully taxable.

Canada Emergency Business Account (CEBA)

  • The portion of the loan that does not have to be reimbursed before December 31, 2022—a maximum amount of $10,000—is taxable in the financial year it was received.

The fdp team at your service

Obtain a personalized assessment of your situation by contacting your fdp advisor. With our team of specialists, he can answer your questions and make recommendations on how to use different strategies to improve your financial situation and reduce your tax bill.

Alexandre Hunault, LL.M. Fisc., Pl. Fin.
Émilie Beaudoin, M. Fisc., Pl. Fin.
Tax specialists


Professionals’ Financial – Mutual Funds Inc. and Professionals’ Financial – Private Management Inc. are wholly owned by Professionals’ Financial Inc. Professionals’ Financial – Mutual Funds Inc. is a portfolio manager and a mutual fund dealer which manages the funds of its family of funds and which offers financial planning advisory services. Professionals’ Financial – Private Management Inc. is an investment dealer member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF) which offers portfolio management services.

The information contained herein has been obtained from sources deemed reliable, but we do not guarantee the accuracy of this information, and it may be incomplete. The opinions expressed are based upon our analysis and interpretation of this information and are not to be construed as a recommendation. The tax strategies mentioned in this article may not apply in all cases. For any questions, don’t hesitate to contact your Wealth Management Advisor or your tax specialist, accountant or legal advisor.

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