Before December 31, 2025, focus on (1) documenting and timing income and deductions, (2) reviewing capital gains and capital losses, (3) confirming rental and business compliance items that can deny deductions, and (4) making any year-end moves that are easier before the calendar turns.

By March 2, 2026, you can still make RRSP contributions that count for 2025.

If you have an owner-managed corporation, also review salary versus dividends, passive investment income, and any income-splitting risks before you finalize remuneration.

This checklist is written for Canadians who want practical year-end steps, including:

• Owner-managed corporations and incorporated professionals
• Investors and high net worth families
• Landlords (including short-term rental hosts)
• Seniors managing OAS and other income-tested benefits
• First-time buyers and families using RRSP and FHSA tools

Where relevant, we reference common scenarios we see in Victoria and the Greater Victoria area, including rentals, small businesses, and real estate driven cash flow.

Most income timing, most deductions, and most credit eligibility depend on what happens in the calendar year.

• 2024 Notice of Assessment and any 2025 Notices of Reassessment
• 2025 pay stubs, bonus letters, and dividend declarations (if incorporated)
• Investment statements (including realized gains and losses)
• Rental income and expense summaries, plus any permits or registrations
• Charitable donation receipts
• Medical receipts (see the 12-month rule in the deductions section)
• Childcare receipts and support payment documentation (if applicable)

For investors and business owners, interest can sometimes be deductible when money is borrowed to earn income (for example, interest on an investment loan). This is a high-value area, but the details matter, including documenting the use of borrowed funds.

If you have multiple loans or lines of credit, map each borrowing to its purpose (investment, business, personal). Clean documentation now reduces risk later.
CRA guidance on carrying charges and interest

RRSP contributions can reduce taxable income, but the best contribution amount depends on your marginal tax rate, cash flow, and upcoming income changes.

TFSAs are often underused by high-income households. Even if you max your RRSP, TFSAs can be a strong tool for tax-free growth and flexible withdrawals.
In many families, a spousal RRSP can help balance retirement income later. Timing and attribution rules matter, so plan before you withdraw.
CRA limits for RRSP and TFSA contributions

The TFSA annual dollar limit for 2026 will be $7,000.

The First Home Savings Account combines RRSP-like deductions with TFSA-like tax-free withdrawals for a qualifying first home.

• Up to $8,000 of contribution room per year
• Up to $40,000 lifetime contribution room
• Unused room can carry forward (subject to the FHSA rules

CRA First Home Savings Account rules

The HBP lets eligible first-time buyers withdraw up to $60,000 from an RRSP to help buy a home. Withdrawals are not taxable if the repayment rules are met.

For certain withdrawals made between January 1, 2022 and December 31, 2025, the start of the 15-year repayment period is deferred, and repayments generally begin later than in the usual structure.
CRA Home Buyers’ Plan rules

If you are renovating to create a secondary unit for a qualifying senior or adult with a disability, the multigenerational home renovation tax credit may be available

The disability tax credit can unlock other supports and planning options. If you believe someone in your household may qualify, consider starting the process early because medical certification and processing take time.

If you are age 18 to 64 and eligible, the Canada Disability Benefit provides income-tested support. Eligibility begins June 2025, and payments begin in July 2025 for approved applications.
Canada Disability Benefit maximum amount and calculation

The digital news subscription tax credit is not available for tax year 2025 onward. If you paid qualifying subscription expenses in 2024, you may still claim up to $500 on your 2024 return.
CRA line 31350 digital news subscription expenses

If your 2025 net income is above the OAS repayment threshold, you may repay some or all OAS. This is a key area to review for retirees with capital gains, large RRSP withdrawals, or large dividend income.

• Timing large RRSP or RRIF withdrawals n- Timing the realization of capital gains
• Reviewing pension income splitting strategies (when eligible)
• Considering the pros and cons of deferring OAS in higher-income years

This section is most relevant if you control a corporation and can choose how to pay yourself.

• RRSP room (RRSP room is based on earned income)
• CPP contributions toward future benefits
• To reduce certain corporate tax attributes or manage payroll-linked requirements

• Flexible income without CPP contributions
• To clear corporate accounts (including certain refund mechanisms)

The best mix depends on your cash needs, profit level, and longer-term goals.

Dividends paid to family members who do not meaningfully contribute to the business can be taxed at the highest marginal rate under the tax on split income rules.

If you provide services through a corporation to a small number of clients in a way that resembles an employment relationship, CRA may classify the corporation as a personal services business. This can result in significantly higher tax and fewer deductible expenses.
Budget 2025 signalled increased focus on these arrangements, including an enforcement project starting with the trucking industry.

CRA personal services business definition and implications

If you own a rental property or a business, the timing of capital asset purchases and “available for use” rules can affect your depreciation claim.

Expenses to earn short-term rental income can be denied for tax purposes when the operation is not compliant with applicable provincial or municipal licensing, permitting, or registration requirements. If you were compliant for only part of the year, deductions may be denied on a pro-rated basis.
CRA short-term rental deductions and compliance rule

If you operate a short-term rental in Victoria or nearby municipalities, confirm your local business licence rules and any provincial registration requirements before you assume expenses are deductible.

If you are planning a sale in the next 12 to 24 months, year-end is a great time to do a “sale readiness” tax review. A small change now can protect large exemptions later.

For some businesses, employee ownership trusts can be part of a tax-efficient succession plan.

In certain situations, it may be possible to defer tax on proceeds that are reinvested in a replacement property within prescribed timelines.

If income, forms, or elections were missed in prior years, the Voluntary Disclosures Program may allow you to correct the issue and obtain relief from some penalties and interest (if the disclosure qualifies). The underlying tax generally remains payable.

The CRA updated the VDP policy for applications received on or after October 1, 2025, including updated relief tiers and expanded eligibility in certain prompted situations.