To avoid the scramble so many of us experience in the late days of December when it comes to our investment contributions and tax planning, Johnson, Johnston & Karavay Wealth Management has put together a checklist to help maximize your year-end efficiency as we prepare to close out 2026 and welcome 2027.

1. Pay Final Tax Installments

If you have a quarterly tax installment, pay the amount CRA recommends by December 15th to avoid any penalties.

2. Make Your Donations

To receive the tax receipt for the 2026 year, the donation must be made by December 31st. Before you make your donation, you may consider an in-kind donation of publicly traded securities rather than cash. Depending on the type of asset and applicable tax rules, this approach can offer two advantages:

1) You receive a charitable donation receipt for the fair market value of the donated property

2) You can avoid a capital gains tax that might otherwise arise on the disposition of the asset.

Typically, the securities with the highest unrealized capital gains in your non-registered accounts can be used to the best advantage.

While you can make a charitable donation at any point in the year, many registered charities see an increase in volume in the later months. To make sure your donation and tax receipt are processed in a timely manner, it is recommended to avoid waiting until December to begin the process.

3. Review Registered Accounts

Registered accounts can play very different roles in your tax strategy, so year-end is a good time to confirm that each one is being used intentionally.

TFSA

The Tax-Free Savings Account (TFSA) remains one of the most flexible planning tools available. Investment growth and withdrawals are tax-free, and can be more advantageous the earlier contributions are made. The 2026 contribution limit is $7,000, but if you have any unused room from previous years, you can augment that. Contribution room can be confirmed on your CRA account. A key point is to avoid overcontributing. If you have made multiple deposits across institutions, it is important to confirm your contribution history

RRSP

The Registered Retirement Savings Plan (RRSP) can be especially valuable if you are in a higher tax bracket and looking to reduce taxable income. At this point, you may consider whether to contribute before year-end or during the first 60 days of the following year depending on how you want to apply the deduction. You can also determine if spousal RRSP contributions fit your household income-splitting strategy.

Not every RRSP contribution needs to be deducted immediately. In some cases, it may be worth contributing now but saving the deduction for a year when your marginal tax rate is higher.

If you turn(ed) 71 in 2026, you are required to roll your RRSP into a Registered Retirement Income Fund (RRIF). All assets must be transferred into the new RRIF by December 31st

RRIF

If this is the year you turn 71, then there are no minimum withdrawals required for 2026. Rather, the year-end value at December 31st will be used to calculate your 2027 minimum RRIF payment.

If you already have a RRIF, important checks include confirming that the required minimum amount has been withdrawn for the year and reviewing whether additional withdrawals make sense based on your cash flow needs and tax bracket.

FHSA

The First Home Savings Account (FHSA) is for eligible* prospective homebuyers. It combines features of both the RRSP and TFSA: contributions are tax-deductible, and qualifying withdrawals for a first home purchase can generally be tax-free.

If you already have an FHSA open and would like the tax deduction for the 2026 year, ensure your contribution is made before December 31st. The annual contribution limit is $8,000, plus any unused room from the prior year only (at any point the maximum room available would be $16,000).

If you are eligible but have not yet opened an FHSA, you may consider opening one before December 31st to be entitled to the 2026 contribution room, even if you decide not to contribute this calendar year. In this scenario, in 2027 you would be eligible to contribute $16,000 in 2027 (2026 plus 2027 contribution room).

*You must be a Canadian resident at least 18 years old (or 19 depending on your province or territory's age of majority) and 71 or younger on December 31 of the year you open the account and must not have lived in a qualifying home that you or your spouse/common-law partner owned during the current calendar year or the preceding four calendar years.

4. Evaluate Tax-Loss Harvesting Opportunities

If you hold investments in a non-registered account, year-end is often the time when tax-loss harvesting enters the conversation. In simple terms, tax-loss harvesting involves selling investments that are in a loss position so that the capital loss may be used to offset capital gains.

Tax-loss harvesting may help if you meet any of the following criteria:

• You have high realized capital gains in the year

• You expect to realize high taxable gains in the near future

• You want to reposition your portfolio while improving tax efficiency

Used thoughtfully, it can reduce current-year tax or create losses that may be applied according to carryback or carryforward rules.

Watch the Superficial Loss Rules

This is where caution matters. If you sell an investment at a loss and then repurchase the same investment, or an identical property, within the restricted period, the loss may be denied under the superficial loss rules.

That means year-end tax-loss harvesting should be conducted with due care. You’ll want to consult with your advisor to verify that you, your spouse or common-law partner, or an affiliated account does not repurchase the same investment within the CRA’s restricted period. Other factors to review include any automatic dividend reinvestment plans could create an issue, or whether a similar, but not identical, investment may be appropriate if you wish to maintain market exposures.

Because settlement-date timing and trading cutoffs can affect whether a transaction is recognized in the intended tax year, last-minute trades can be risky from an administrative standpoint.

5. Important Dates

December 15th

• CRA quarterly installment payments due

December 31st

• FHSA contribution deadline for 2026 tax year

• Open FHSA by deadline to qualify for the 2026 contribution room

• Deadline for charitable donations to get the tax receipt for 2026

• All trades for tax loss selling must be settled by today for the loss to qualify

March 1st, 2027

• Deadline for 2026 RRSP contribution window