5 Proven Ways to Legally Reduce Your Taxes

If these tips are appropriate for you, you can save taxes, increase your savings and build financial security.

Ask your employer to contribute some of your compensation directly to your RRSP. This means tax doesn’t have to be withheld on the amount paid, so you get a larger RRSP contribution — plus your interest will compound faster.
If you have a mortgage and substantial non-registered investments, consider liquidating some investments, use the funds to pay down your mortgage, then extract equity to purchase new investments. Borrowing money from your home to make investments makes your mortgage interest tax deductible.
Start doing some work from home so you can deduct certain home expenses. If you regularly work at home or host client meetings, ask your employer to formalize the arrangement in writing.
Since some investments are taxed at higher rates than others, make sure to put your highly-taxed investments—such as GICs and bonds—into RRSPs and Tax Free Savings Accounts. Stock dividends are taxed at a lower rate, so they should go in your non-registered account.
If you’re expecting a big tax refund this year, request a reduction in the taxes deducted from your pay. This means you get the refund you’re expecting earlier.

If you’d like more valuable tax tips, I can introduce you to one of my trusted local tax experts. Call me today.