Earning your income, making purchases, buying your dream home, investing for your future, saving for your children’s higher education – nearly all of the things that are important to you have tax implications.
Those tax-related consequences can be costly and, if not planned properly, can consume an increasing piece of your financial bottom line. Canadians often are paying far too much in taxes, without ever realizing it. Fortunately, professional tax planning and analysis can help to ensure you’re paying the correct amount of tax, saving you from costly over payment mistakes.
The Income Tax Act is especially applicable here. While it was created specifically to ensure that everyone pays their fair share, it also allows you to analyze and evaluate your finances to minimize that tax liability. By working with a tax planning professional, you can organize your financial affairs to legally minimize the amount of tax you’re paying. That is the primary objective of tax planning.
Taxes aren’t just something you should worry about in April – the smartest approach is to recognize and evaluate tax implications year round. The Act is often complex, with tax rules changing nearly every year. Income exclusions, key tax credits, retirement contribution options, investment rules – it’s hard to stay on top of the latest tax applications of the Act.
At Precision Wealth, we understand the tax aspects of the plans we recommend, and we stay on top of the tax implications of the various types of investment returns. We work alongside your current tax professional, or we can refer you to excellent professionals who are able help round out your financial strategy.