7 Money Moves to Make Before December 31

1. Top up your FHSA, or at least open one

If you’re saving for your first home, the First Home Savings Account (FHSA) gives you a tax deduction going in and tax-free withdrawals for a qualifying home purchase. Unlike an RRSP, there’s no 60-day grace period: contributions must be made by December 31 to count toward this year’s room.

• You get $8,000 of room per year, and you can carry forward up to $8,000 of unused room, so you may be able to contribute up to $16,000 in a single year.
• Room only starts building once you open your first FHSA. Opening one before December 31, even with a small deposit, gives you 2026 room you can use later.
• You don’t have to claim the deduction in the year you contribute. If you expect a higher income next year, you can carry it forward.

2. Time your TFSA withdrawals

When you take money out of a Tax-Free Savings Account, that amount is added back to your contribution room on January 1 of the following year, not right away. If you’re already planning to withdraw in early 2027 for a renovation, a car or a down payment, withdrawing in December instead means you get that room back about a year sooner.

• The 2026 annual limit is $7,000. If you’ve been eligible since the TFSA began in 2009 and have never contributed, your total room is $109,000.
• Be careful putting money back in the same year you took it out. If you don’t have unused room, the re-contribution is an over-contribution, and the CRA charges a 1% penalty tax for every month it stays in the account.

3. Harvest capital losses in non-registered accounts

If you sold investments at a gain this year, selling others that are worth less than you paid can offset that gain. This is called tax-loss selling. Net capital losses you can’t use this year can be carried back three years or forward indefinitely.

• Trades settle one business day later, and it’s the settlement date that counts. The last day to trade for a 2026 loss is Wednesday, December 30, 2026. Many advisors suggest finishing by mid-December to leave room for problems.
• Watch the superficial loss rule. If you, your spouse or another affiliated person buys the same or an identical investment within 30 days before or after the sale, and still holds it 30 days after, the loss is denied. Buying it back inside your own TFSA or RRSP can trigger the rule too.
• This only applies to taxable accounts. Losses inside a TFSA, RRSP or FHSA can’t be claimed.

4. Make your RESP contribution to collect the grant

The federal government adds a 20% Canada Education Savings Grant on the first $2,500 you contribute to a child’s RESP each year, which is up to $500 per child. Contributions must be made by December 31 to qualify for this year’s grant.

• If you missed earlier years, unused grant room carries forward. You can catch up by up to $1,000 of grant a year, on a $5,000 contribution.
• The lifetime grant is $7,200 per child and ends in the year the child turns 17. Special rules apply at ages 16 and 17.
• Lower- and middle-income families may qualify for an additional grant and the Canada Learning Bond.

5. Give to charity before the year ends

Donations to registered charities made between January 1 and December 31 count for that tax year. Online donations are generally dated when the payment goes through, so don’t leave it until the last evening.

• You can carry unclaimed donations forward for up to five years, which can help if you’d like to group them into a single year.
• Spouses and common-law partners can claim each other’s receipts on one return, which often produces a slightly larger credit.
• Keep your official receipts for six years in case the CRA asks for them.

6. Plan your RRSP contribution (you have until March 1)

RRSP contributions for the 2026 tax year can be made until March 1, 2027, so this one can wait, but it’s easier to plan now than in February. Your 2026 limit is 18% of your 2025 earned income, up to a maximum of $33,810, plus any unused room from earlier years, minus any pension adjustment. Your exact number is on your latest Notice of Assessment or in CRA My Account.

Turning 71 in 2026? Your RRSP must be converted to a RRIF or an annuity by December 31, 2026, and your last RRSP contribution must be made by that date as well.

7. Business owners: book a year-end check-in

If your corporation’s year-end is December 31, a short review in November or early December can save a scramble later.

• Bring your bookkeeping up to date so there are no surprises in your financial statements or GST/HST filings.
• Decide how to pay yourself before year-end. Salary and dividends are taxed differently, and only salary creates RRSP contribution room for next year.
• T4 and T5 slips for 2026 are due by the end of February 2027.

Not sure which of these apply to you?

Most people only need two or three of these. Which ones depends on your income, your accounts and what you’re saving for. That’s what our free financial review is for: 45 minutes, no obligation, built around your numbers. If it’s your taxes you want help with, see our accounting and tax services.

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