High net worth year-end tax tactics
Year-end tax tactics are numerous and may be quite lucrative if
you act before year-end. Many of these tax tips will be covered
elsewhere. In this article, I'll look at a few lesser-known,
but equally lucrative, year-end strategies that will be of interest
to higher net worth investors, businesspeople, and executives.
Defer tax on interest
The Income Tax Act allows a deferral of tax on an
interest-bearing investment for one year after its purchase, unless
the interest is paid or credited to a taxpayer's account in the
meantime.
For investments on which interest payments are deferred (e.g.,
payments that occur once or twice a year), it may make sense to
make the purchase early in the New Year, rather than late in the
current year, since this means that at least a portion of the
interest payments will be "kicked over" to the next year.
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