Tax Planning Strategies for 2023

KJL & Associates

Tax Planning Strategies for 2023

As the end of 2023 gets closer many Manitobans are beginning to plan ahead for the holidays, but what about the tax season? It may not be as merry as the holidays and might not fill your heart with joy, but filing taxes correctly and on time is important for both individuals and businesses. Instead of waiting until the last minute, the experts at KJL and Associates want to help to alleviate the stress of filing with effective income tax planning strategies.

One of the biggest secrets to filing taxes on time is that year end tax planning doesn’t have to wait until the end of the year! By working with a Chartered Professional Accountant, Manitobans can plan ahead for the future and take full advantage of available deductions and credits. Don’t stress this tax year, call KJL and Associates instead.

Create Your 2023 Tax Plan: Customized Plans For Individuals and Businesses

Throughout the course of the year, there are plenty of reasons to speak with a financial expert, such as estate or financial planning services but there is no better time than tax time. Filing taxes may seem daunting to anyone outside the financial sector but, to an expert, this is an opportunity to help their clients save money and take one more step toward financial freedom.

At its core the tax planning process is pretty simple: analyze your financial situation and find the best way to maximize your tax savings. While maximizing savings is great for clients, CPAs are also responsible for keeping up with changes in tax law. For businesses, working with financial professionals can help to make sure that your filings are in compliance with all tax laws, as well as increasing profits, deductions and help to identify areas where you can save money on everyday running expenses.

Maximize Your Credits & Deductions: There are many ways to maximize deductions and credits associated with personal and commercial taxes but not everyone knows about them. Navigating the wide world of tax rules and opportunities can be complicated so it is always best to rely on the expertise of a tax advisor in your area.

Scheduling Expenses & Income: If there is a large expense that you have been dreading, it might be worth it to do it sooner rather than later. For example, paying out for an expensive home renovation just before the end of the year means being able to record the cost and the potential for receiving available tax credits for renovations and/or energy efficient initiatives. In the case of increased income, like a bonus, it might be a good idea to carry those tax deductions over into the next year so as not to impact your tax bracket just before the end of the year. Carrying over educational expenses is another way to mitigate the tax repercussions of an increased income in the new year.

Tax-Loss Harvesting: No, this doesn’t involve any seeds or heavy equipment. In fact, this process involves getting rid of items in order to off-set losses. This might seem counter-intuitive but a CPA can walk you through the process. Tax-loss harvesting involves selling investments

that have lost value and uses these losses to offset capital gains tax. It will help to reduce taxable income and can help to save money.

Tax-Efficient Investing: In the same way that selling off under-performing investments are a part of expert tax planning, so are gaining investments. By putting your money into tax-efficient investment accounts like a Registered Retirement Savings Account or a Tax-Free Savings Account, you can stand to save thousands.

Managing Your 2023 Taxes: Plan Ahead with KJL & Associates

If you find yourself struggling to get started on the tax planning process, reach out to a local expert to create a plan that is realistic, attainable and measurable. Whether you struggle with filing your tax returns on time, find it difficult to navigate tax laws or are unsure of how to claim investment income, one phone call can get you started on the path to success.

Failing to file taxes on time or correctly can result in fines and fees, as well as an elevated interest rate on repayments. If you are unsure about the tax processes in Manitoba, trust a reliable CPA to simplify the process. Highly knowledgeable tax specialists are able to walk you through your filing, explaining your options and the processes required to maximize your returns and take advantage of every opportunity for your personal or business taxes.