As 2023 nears its close, it's time to help your clients focus on finalizing their financial strategy for a smooth transition into 2024. This year-end financial checklist can help guide them through a few key considerations to secure a solid foundation going into 2024.

There are different year-end strategies to help set clients up for success. These are a few common financial planning ones. If you have questions on behalf of your clients feel free to reach out to a member of the IA network or your firms Financial Planner.

Key Financial Actions Before Year-End:

1. Tax-Loss Selling:

• Ideal for those with unrealized capital losses in non-registered accounts, including corporations.
• The objective is to realize these losses to offset future capital gains, maintaining long-term positions, or to carry-back to offset gains earned in a prior year.
• Be mindful of the “superficial loss rule” to avoid disallowed claims by the CRA.

2. Registered Retirement Income Funds (RRIFs):

• RRIF owners should ensure their minimum annual payments are completed.
• Consider drawing additional income if it's tax-efficient, remembering all withdrawals are taxable.
• Consult with your CPA to understand any implications that taking more from your RRIF may have on your Old Age Security.

3. Registered Retirement Savings Plans (RRSPs):

• Haven't contributed to your RRSP for 2023? You have until February 29, 2024 to do so.
• If you turned 71 this year, convert your RRSP to a RRIF before the year-end.

4. First-Time Home Buyer’s Savings Account (FHSA):

• A new opportunity in 2023 for first-time homebuyers.
• $8,000 contribution limit for 2023.
• Can transfer from your RSP or your TFSA.
• Maximizing contributions can significantly aid in purchasing a first home.

5. Tax-Free Savings Account (TFSA):

• $6,500 annual contribution limit for 2023
• Prepare for the increased annual contribution limit in 2024 to $7,000.
• Plan ahead to utilize this tax-sheltering opportunity effectively.

6. Charitable Donations:

• Finalize your charitable contributions in December for the 2023 tax year.
• Consider in-kind donations of appreciated shares to optimize tax benefits.
• Make sure to obtain a tax receipt that clearly indicates the charity or foundations Charity Registration Number, donation date and value of the donation to ensure the donation is tax deductible.

7. Alternative Minimum Tax (AMT):

• A topic of evolving importance, especially for high-income earners earning more than $173,000 per year AND considering either making a large donation or selling a high value property such as a business or investment
• Consult with your CPA to understand the implications of potential new AMT rules.

Proactive financial planning not only ends the current year on a positive note but also sets the tone for a prosperous new year. However, each financial situation is unique.

To ensure that your year-end strategies align with your financial goals, we encourage you to reach out to one of the trusted advisors on your integrated planning team to discuss your specific needs and any questions you might have.