2022 Year-end Tax Planning Opportunities
Introduction
As the war broke out in Eastern Europe this year, the physical destruction and the effects of sanctions caused additional shocks to an economy recovering from a global pandemic. We are seeing higher energy prices and weaker confidence in the economy and financial markets as the world still suffers from pandemic-driven inflation. Such has been speculated in the past few years, there has been much discussion about income tax increases in future years to recover pandemic costs. Whether those increases result in changes to capital gains inclusion rates, personal tax rate increases, adjustments to the principal residence exemption, corporate tax rate increases, or some other tax measures to target extreme wealth inequality, no one can predict the future with any certainty. The information contained in this document is accurate at the time of writing (October 2022), and the Canadian government may introduce new tax measures before the end of the year.
Despite the uncertainty of future tax policies, taxpayers can take actions based on the tax legislation in place today before federal and provincial governments introduce changes. With deadlines fast approaching, now is the time to take advantage of tax-deferred growth opportunities, tax advantaged investment strategies, and charitable-giving opportunities, among others, to maximize deductions and credits for your tax situation. Reviewing your investments in light of your goals, the tax policy environment, and the economic landscape can help you and your advisor see where adjustments need to be made to position yourself for 2023 and beyond.
Important Dates to Remember
| December 2022 | 15 | Fourth quarter tax instalment payment for 2022 due. |
| 28 | Last day to sell securities on Canadian markets to realize a gain or loss. Settlement is T+2 days. |
|
| 28 | Last day to sell securities on U.S. markets to realize a gain or loss. Settlement is T+2 days. | |
| 31 | Last day to pay investment loan interest to deduct in 2022. | |
| 31 | Last day to complete charitable contributions for 2022. Allow enough time to complete donations that may require additional lead time, such as securities donations. |
|
| 31 | Last day to pay childcare, medical, and tuition expenses to claim deduction or credit on the 2022 T1. |
|
| 31 | Annual tax instalment payment for 2022 due for farming and fishing income. | |
| January 2023 | 30 | Must pay prescribed rate loan interest by this date to maintain income splitting. |
| February 2023 | 28 | Deadline for employers to report T4/T5 to CRA. |
| 28 | Deadline for employers to send T4 receipts to individuals. | |
| 1 | Deadline to contribute to a Registered Retirement Savings Plan to claim as a 2022 deduction. | |
| March 2023 | 15 | First quarter tax instalment payment for 2023 due. |
| 31 | Deadline for paying balance owing for Form T1-OVP if you made excess RRSP contributions in 2022. |
|
| 31 | T3 trust tax return deadline for trusts with a December 31 year-end. |
|
| May 2023 | 1 | Deadline to pay your 2022 taxes and file your 2022 Individual T1 tax return. |
| June 2023 |
15 | Deadline to file your 2022 Individual T1 tax return if you or your spouse earned self- employment income. Tax payment deadline remains May 1 , 2023. |
| 15 | Second quarter tax instalment payment for 2023 due. | |
| 30 | Deadline to file your TFSA return RC243 and pay taxes if you made excess contributions in 2022. |
|
| September 2023 | 15 | Third quarter tax instalment payment for 2023 due. |
| October 2023 | 1 | Last day to buy or build your qualifying home if you made a Home Buyers’ Plan withdrawal from your RRSP in 2022. |