Year-end financial and fiscal strategies

The end of 2019 is around the corner. This is an opportunity to implement some tax-efficient strategies.

If either one of these strategies interest you, please contact me.

1) Registered Education Savings Plan (RESP)

If you plan to open a student savings plan for your children or grandchildren, do it before December 31st, 2019. Hence, you will benefit from all the federal and provincial subsidies available for 2019.

2) The forgotten RRSP contribution

Just because you have to wind up your RRSP in the year you’re celebrating your 71st birthday does not mean you have to stop taking RRSP deductions. In fact, here is a strategy that can be used after age 71, providing you have unused contribution room in an RRSP or are in the process of accumulating some.

The deadline to convert your RRSP into a RRIF is December 31st of the year you turn 71. After that, you cannot put any more money into your individual RRSP. Let’s say you turn 71 on December 21st, 2019 and are still working. In 2019, you will accumulate contribution room in your RRSP that you can use in 2020. But you must convert your RRSP no later than December 31st, 2019. It becomes impossible for you to benefit from the accumulated contribution room.

What to do?

Make an overcontribution in your RRSP for 2019 before converting it to a RRIF. You will have to pay a small penalty, but you will be able to benefit from the rights acquired in the year of your 71st birthday.

3) Realize capital losses

If you have capital losses on your nonregistered investments, it’s worth selling them before the end of the year.

If you realized capital gains in the past 3 years, these losses may apply and thus help reduce your taxes for 2019.

Beware of apparent losses!

If you sell securities with capital losses, and you or your spouse buy the same securities within 30 days (before or after), your loss will be deemed to be nil and will increase the adjusted cost base of the same amount on the new title.

4) Contribute to your spouse’s RRSP

If you intend to contribute to your spousal RRSP, we suggest you do so before December 31st, since it is mandatory to wait 3 calendar year ends after the last contribution paid to tax the annuitant’s plan (the spouse).

5) Withdrawing from a TFSA

If you need to withdraw from your TFSA in the short term, consider doing so before the end of the year. Since the amount withdrawn is added to the contribution room for the following year, you could contribute the amount withdrawn as of January 1st, 2020.

6) Plan your tax credits

Since certain tax credits and tax deductions are calculated on various expenses made during the fiscal year, make sure you make your payments by December 31st, 2019 and keep your receipts (medical expenses, investment expenses, moving expenses, tuition fees, childcare expenses …). By making these payments in the same year instead of 2 or 3 years, you can maximize your tax credits.

If you want to set up any of these strategies, do not hesitate to contact me.


Mauro DiCesare, B.Comm, Pl.FinPlanificateur Financier/Financial Planner 
Financial Security Advisor/Conseiller en Sécurité Financière avec Groupe Financier Finvest Inc.
Mutual Fund Representative/Représentant en épargne collective avec Investia Services Financiers Inc.
514-376-7771