Year End Tax Planning

Its a good time now to ensure that you have actually paid the following types of expenses before December 31, 2012 in order to claim a tax deduction on your return.

They include:

• Fees paid to manage your investments.

• Safety deposit box fees.

• Interest on money borrowed for investment purposes to earn interest or dividends.

• Legal fees paid relating to support payments you will receive including spousal and child support.

Some additional points to note:

• Fees paid to manage RRSP’s are not deductible nor can a payer claim legal fees paid to establish, negotiate or contest the amount of support payments.

• Spousal Support under court orders or written agreements are deductible only if they were paid.  You cannot claim legal fees you paid to get a separation or divorce or to establish custody of or visitation arrangements for a child.