Tax planning

A real financial plan is tax efficient. We build plans using comprehensive tax strategies.

What is tax planning?

 

Tax planning is the process of ensuring that all aspects of your financial plan work together in such a way that they reduce your overall tax bill as much as is legally possible. Minimizing your taxes allows you to grow your investments faster.

 

Why is tax planning important?

Tax planning impacts your entire financial plan

Tax management plays a crucial role in every comprehensive financial plan and should be a consideration for every aspect within it.

You could save money by paying less tax

Tax planning strategies can reduce your tax obligations, including on capital gains and investment withdrawals.

You could reduce liabilities and protect your assets

Good tax management can lessen an estate’s tax liabilities, as well as ensure you keep more of your investment growth.

Strategies to minimize tax planning

  • Hold investments in registered accounts, such as TFSAs, RRSPs and RESPs
  • Income splitting can reduce taxes by moving income to a lower-earning spouse
  • Maximize permissible tax deductions and tax credits
  • Use the Home Buyers’ Plan to make a down payment on a new home
  • Charitable giving can help reduce your tax liabilities

Tax strategies are part of every IG Living Plan

We believe that tax strategies should be included in every aspect of a financial plan. IG advisors take a comprehensive approach to financial planning that always includes tax planning: this includes using our Living Plan software, which has a powerful tax calculation engine that suggests strategies to help minimize tax.

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Frequently asked questions

  • What are the benefits of tax planning for individuals?

    Minimizing the amount of tax you pay means you keep more of your income and investment growth. This will help you meet your goals faster: from paying off debt to saving for retirement or your kids’ education.

  • Are there any simple ways to reduce my taxes?

    You can reduce your tax bill considerably by taking advantage of all the tax deductions and tax credits that you’re entitled to.

    Federal tax deductions include:

    •  RRSP contributions
    • Spousal support payments
    • Deductible interest charges on loans used to earn income from a business or property
    • Union and professional dues
    • Contributions to a company pension plan
    • Some moving expenses
    • Expenses related to self-employment
    • Child-care expenses

    Federal non-refundable tax credits include:

    • Medical expenses (for example, you could pool your family medical expenses on the lower income spouse’s tax return)
    • Charitable donations (for example, you could pool the donations you and your spouse made in the year, or carry them forward up to five years)
  • Who needs tax planning?

    All individuals and organizations that pay tax can benefit from tax planning. Many tax credits and government assistance programs are calculated based on net income on tax returns. Using tax strategies can help ensure you maximize these benefits and credits, such as by making RRSP and TFSA contributions, so your taxable investment income is lower.


Additional resources 

Tax checklist for Canadian tax returns
By IG Wealth Management
February 23
Read article
Strategies for Tax-Efficient RESP Withdrawals
By IG Wealth Management
August 30
Read article
Can I deduct home office expenses on my tax return?
By IG WEALTH MANAGEMENT
November 30
Read article

Getting started is easy

Here’s what to expect with your initial conversation with an IG advisor; they will:

1

Understand what’s important to you: your values, concerns and goals.

2

Share our approach to financial planning, which goes beyond investments, to include tax efficient strategies, risk reduction and more.

3

Answer any questions you may have and establish our next steps.

Are you ready to connect with an IG advisor?
Let’s get started building your unique, comprehensive financial plan today.
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