If you are like most Canadians, you think about your tax bill once a year, usually right before the April filing deadline. Unfortunately, by April it's too late to do anything to save on that year's tax bill. With the notable exception of RRSP contributions, most of the steps you can take to lower your tax bill must be taken before December 31.

Take a proactive approach to tax planning. A good long-term tax plan looks at things such as deferring taxes using RRSPs, income splitting strategies, and ways to reduce the taxes payable on your estate. It involves taking a holistic look at your financial situation and goals, then coming up with a long term plan to minimize the tax you pay year after year, and get the maximum benefit from the money you earn.

Examine some of the things you can do before the end of the year to lower this year's tax bill, including:

• Realizing capital losses on your investments, to offset capital gains income
  
• Paying deductible expenses such as child care, alimony & support payments, medical expenses, moving expenses and union dues
  
• Donating to a charity or contributing to a political party or candidate
  
• Making your final RRSP contribution if you have turned 69 in 2005, and deciding whether to roll it over into a RRIF or an annuity.
  

Don't wait until it is too late to minimize your 2005 tax bill. And while you are thinking about it, now is the perfect time to start planning for the future. Visit our website or give us a call and we can set up an appointment to discuss some long-term strategies to help you limit your future tax liability. We look forward to hearing from you.

Yours truly,

Tactical Asset Management, Inc.
phone: (306) 757-2121
fax: (306) 347-3655
e-mail: inquiry@tacticalassetmgmt.com
website: www.tacticalassetmgmt.com