Tax Tips for Year End

As we near closer and closer to the end of 2025, here are a few last minute tax tips to consider if you haven't already.

1. TFSA Withdrawals

If you have a planned expense in 2026 and might not have sufficient cash on hand to fund the expense, consider withdrawing from your TFSA to fund the expense during the 2025 calendar year. As a reminder, all TFSA withdrawals done in one calendar year count towards additional contribution room in the next calendar year. For instance, if you did a TFSA withdrawal of $50,000 in December of 2025, on January 1st you could add $50,000 back into your TFSA.

2. Open a First Home Savings Account (FHSA)

If you plan on buying a home in the next 15 years, the best financial account to accomplish this is the FHSA. Your contributions are tax deductible, and the withdrawals are tax free when used for a qualifying purchase. Even if you don't plan on funding the account this year, by opening an account in December of 2025 will allow give you an additional $8,000 in carry forward contribution room in 2026, potentially allowing you to contribute up to $16,000 next year.

3. Contribute to a Registered Education Savings Plan (RESP)

By making contributions to a RESP before year end, you could receive a government grant of up to 20% (assuming you haven't previously maxed out the grants). 

4. Withdraw from a Registered Education Savings Plan (RESP)

If your child is attending post secondary, this could be an opportunity to withdraw from the RESP before year end and strategically increase the taxable income for your child in 2025. 

5. Ensure Interest is paid on Spousal Loans

If you've utilized a spousal loan strategy, interest has to be paid on the spousal loan before year end, so if you haven't made this payment yet, make sure you do.

6. Make Charitable Donations

All donations must be made before Dec. 31, 2025 in order to be counted for the 2025 calendar year. 

While the year is almost up, I just want to say thank you for another year of partnership. Your continued trust is the foundation of my practice, and I am grateful for the opportunity to serve you.

Merry Christmas to you and your family. However you choose to celebrate, I hope you find the opportunity to pause and spend some quality time with the people who matter most.

Best, 

Jon


Jonathan Adomait
Financial Planner | CFP, CIM, B.Eng