Don't wait until April to review your taxes: Five tax strategies for year end

Don't wait until April to review your taxes: Five tax strategies for year end 
Take advantage of tax strategies before December 31 to pay less in taxes 
TORONTO, Nov. 29, 2013 /CNW/ - CIBC (TSX: CM) (NYSE: CM) - Canadians who want 
to take full advantage of various 2013 tax planning opportunities need to act 
before year end instead of next April, says CIBC's tax and estate planning 
expert, Jamie Golombek. 
"With the holidays approaching, the last month of the year is very busy," said 
Mr. Golombek. "But it's also an important time of year to put tax planning 
strategies in place that can help reduce taxes for 2013. Instead of waiting 
until April to think about tax planning, now is the time when Canadian 
investors can take advantage of various year end tax strategies, specifically 
designed to reduce their 2013 taxes. These strategies are easy for Canadians 
to implement, but they need to act before year end." 
Mr. Golombek cites five important tax strategies from his newest report, 2013 
Year End Tax Tips. 
Consider tax-loss selling 
Tax-loss selling involves selling investments with accrued losses at year end 
to offset capital gains realized elsewhere in your portfolio. Any capital 
losses that can't be used currently can either be carried back three years or 
carried forward indefinitely to offset capital gains in other years. In order 
for your loss to be immediately available for 2013 (or one of the prior three 
years), the settlement must take place in 2013, which means the trade date 
must be no later than December 24, 2013. 
Prepare for retirement 
There are a number of tax considerations for those just entering into their 
retirement years: 

    --  If you turned 71 in 2013, you have until December 31 to make
        any final contributions to your RRSP before converting it into
        a RRIF or registered annuity.
    --  As of July 2013, you can defer your Old Age Security pension by
        up to 60 months.  Future pension payments will be increased by
        0.6% for every month that you delay receiving the pension
        beyond age 65, so your pension could be 36% higher at age 70.

Plan for withdrawals from registered plans

If you're planning to withdraw funds in the near future from an RRSP, TFSA or 
RESP, here are some tips to help you decide whether to withdraw in 2013 or 
early 2014:
    --  If you're thinking of withdrawing funds from a TFSA in the near
        future, consider accelerating that withdrawal so the funds are
        withdrawn by the end of 2013. That will then allow you to
        recontribute them again if the funds become available in 2014,
        rather than having to wait until 2015.
    --  For withdrawals from an RRSP under the Home Buyer's Plan or
        Lifelong Learning Plan, waiting until 2014 to make the
        withdrawal will give you an extra year before you're required
        to begin making repayments to the plan.
    --  For RESPs, if the beneficiary is attending school and has
        little income, consider paying Educational Assistance Payments
        (EAPs) in December 2013. Although payments will be included in
        the student's income, if the student has sufficient personal
        tax credits the EAPs can be received tax-free.

Donate to your favourite charity

December 31 is the last day to make a donation and obtain a tax receipt for 
2013. Many charities offer the ability to donate online, with electronic tax 
receipts that are emailed to you instantly. You may also be able to claim the 
new federal First-Time Donor's Super Credit (FDSC) if you and your spouse or 
partner haven't claimed a donation tax credit in the past five years. The 
FDSC provides an additional 25% federal credit for cash donations made after 
March 20, 2013, yielding a federal credit of 40% for total donations up to 
$200 and 56% for total donations between $200 and $1,000. Provincial donation 
tax credits further increase your tax savings.

Pay expenses by year end to be eligible for tax deductions and credits

Claiming expenses, such as daycare fees, interest on student loans, and 
spousal support payments can all provide benefits at tax time; however, you 
must pay these expenses by the end of the year to realize the tax savings for 

"These tips highlight several ways you can act now to benefit from tax savings 
when you file your return next spring," says Mr. Golombek. "But keep in mind 
that tax planning is a year-round affair. Speak to your advisor well in 
advance of tax filing season to get more information on how to reduce your 

For more details on these five strategies, along with a few more, see Mr. 
Golombek's report, 2013 Year End Tax Tips

About CIBC 
CIBC is a leading North American financial institution with nearly 11 million 
personal banking and business clients. CIBC offers a full range of products 
and services through its comprehensive electronic banking network, branches 
and offices across Canada, and has offices in the United States and around the 
world. You can find other news releases and information about CIBC in our 
Press Centre on our corporate website at

Kevin Dove, Head of External Communications, 416-980-8835, 
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CO: Canadian Imperial Bank of Commerce
ST: Ontario
-0- Nov/29/2013 12:00 GMT
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