By Mark Bull, MFA-P, CLU, CFP, CHS, CEA
President, Bull Financial

Hard to believe we are only a few weeks away from the new year! With that in mind, it’s time to consider some strategies to put in place before December 31^st. As with previous years, year-end tax planning is one of the most important and overlooked steps that Canadians can take to reduce taxes, maximize deductions, and set themselves up for success in the year ahead. For many households, this year’s planning will feel very similar to 2024 when it comes to RRSPs, TFSAs, FHSAs, charitable giving, and planning around investment gains, with a major difference to the capital gains inclusion rate.

In the vlog below, I give insight into other strategies which you could implement this year, such as combining two strategies together: Charitable Giving and Tax Loss selling. I highly encourage you to give it a watch before revisiting last year’s strategies.

Revisiting Last Year’s Key Strategies 

Much of your 2025 year-end planning will look similar to last year. 

1. Review and Update Your Strategies for Capital Gains 

In 2024, we were preparing for a major increase to the capital gains inclusion rate from 50% to 66.67% for individuals, corporations, and trusts. Individuals were to be taxed at the lower 50% rate only for their first $250,000 in annual gains, with the remainder taxed at the higher rate. 

That change has now been cancelled, restoring the inclusion rate to 50% across the board. 

2. Maximize TFSA and FHSA Contributions 

Registered accounts remain among the most powerful tax tools available: 

TFSA (Tax-Free Savings Account) 

• 2025 contribution limit: $7,000 
• Cumulative room since 2009: $102,000 (if you turned or were older than 18 in 2009. Confirm your cumulative room by logging into MyCRA) 

Growth is completely tax-free, making this a cornerstone for both short and long-term savings. 

FHSA (First Home Savings Account) 

• Annual limit: $8,000 
• Lifetime limit: $40,000 
• Contributions are tax-deductible
• Withdrawals for a first home are tax-free 

Opening an FHSA before December 31^st and making any contribution allows unused contribution room to carry over to 2026.

3. Make Strategic RRSP Contributions 

Like the FHSA, RRSP contributions are tax-deductible, and allow for tax-deferred investment growth. Key reminders: 

• If you turn 71 in 2025, your RRSP must be converted into a RRIF by December 31^st 
• Any final RRSP contributions must be made before conversion 

4. Charitable Giving 

Year-end is the ideal time to support causes and the charities you care about while reducing your tax bill. 

Gifts made before December 31^st qualify for the 2025 tax year. Consider donating accrued gains in non-registered accounts, as this eliminates all capital gains tax on the donation while generating a full tax credit on the fair market value. 

5. RESP Contributions 

If you have children or grandchildren, contributing to their RESP ensures access to the Canada Education Savings Grant (CESG): 

• CESG gives you 20% of your annual contribution (up to $500) 
• Unused CESG room carries forward 
• The maximum CESG you can receive in a single year is $1,000 

Making contributions before year-end helps you maximize government incentives. 

Year-end is a great time to make use of these tax-minimization strategies. Whether you’re looking to reduce capital gains exposure, maximize registered account contributions, support meaningful causes, or optimize your corporate structure. 

With the capital gains increase officially reversed, 2025 tax planning looks much like the years before 2024’s proposed change. But the deadlines remain firm, and the opportunities are meaningful. 

Mark Bull, MFA-P, CLU, CFP, CHS, CEA
President, Bull Financial
mark@bullfinancial.ca
905-576-0230

This is a general guide only and is not intended to replace professional financial and tax advice in any form. Please consult a professional financial advisor on how it relates to your situation. The information provided here is accurate as of the date of publication.