7 Year-End Tax Moves to Make Before December 31st (That Your Accountant Won’t Remind You About)

The end of the year is fast approaching — and if you’re an incorporated business owner in Canada, that means now is the time to get strategic about taxes.

Don’t wait until February or March to think about tax planning. By then, your options are gone.

At Nex CPA, we help clients get ahead — and that starts in November.

Here are 7 tax-smart moves you can still make before December 31st to potentially save thousands on your 2025 return:

1. Pay Yourself a Bonus or Dividend

If you're planning to pay yourself from the corporation this year — whether as a bonus (salary) or a dividend — it has to be done before December 31 to count toward 2025 income.

⚠️ But here’s the kicker: if you're paying a bonus, it must be accrued and properly withheld at source. CRA will want to see the payroll remittances handled correctly, even if the cash is paid out in early 2026.

Need help with this? We run the calculations and handle the filings for you.

2. Purchase Capital Assets Before Year-End

Thinking of buying equipment, furniture, or even a new laptop?

Buy it before December 31, and you may be able to claim a full year of depreciation (Capital Cost Allowance) in 2025 — as long as it’s available for use by year-end.

Bonus: If you qualify for the Accelerated Investment Incentive, your first-year deduction could be even bigger.

3. Make a Corporate Donation

Charitable donations from corporations are deductible — up to 75% of net income — and can create real tax savings.

Whether it’s a one-time gift or part of your CSR strategy, donations made by December 31 can help reduce 2025 taxes and build goodwill.

Be sure to get official donation receipts — CRA wants proof.

4. Trigger Capital Gains or Losses Strategically

If your corporation holds investments, this is the time to do some capital gains/loss harvesting.

• Sitting on realized gains? Consider triggering losses before year-end to offset them.

• Want to use up capital losses carried forward from prior years? You’ll need to trigger a gain to match them.

  
  

There are rules (like the superficial loss rule) you’ll want to navigate carefully. We model these scenarios for you to stay compliant.

5. Prepay Eligible Business Expenses

CRA allows you to deduct certain prepaid expenses, such as:

• Rent

• Software subscriptions

• Insurance

• Professional fees

If you’ve got excess cash and want to reduce your 2025 taxable income, paying these early might give you an edge — but make sure they’re actually deductible now, not later.

We can advise on what’s eligible and what isn’t.

6. Review Shareholder Loan Balances

Have you taken money from the company personally?

If it’s sitting as a shareholder loan receivable and not repaid within the proper timeline (usually one year from year-end), CRA may treat it as income — and tax it accordingly.

Avoiding this is easy with the right planning:

• Repay the loan before year-end

• Convert to salary or dividend

• Set up a repayment schedule

We’ll show you which option makes the most tax sense.

7. Top Up Your RRSP and TFSA (If You Draw Salary)

If you’ve paid yourself a salary this year (vs dividends), you’ve likely generated RRSP contribution room.

Top up your RRSP before the March 2026 deadline, but note: contribution room is based on 2025 salary. So if you want more room? Boost your salary now.

Same goes for your TFSA — if you have cash available, topping up before year-end starts the tax-free growth clock early.

You Still Have Time — But Not Much

These moves are most effective when planned early. You don’t want to be scrambling between Christmas and New Year’s.

📞 Book a Tax Strategy Session Today Let’s run the numbers and show you which of these moves make sense for your situation.

About Nex CPA

Nex CPA is a boutique Canadian digital accounting firm that provides online accounting solutions by combining technology and forward-thinking businesses. Tailored for the modern entrepreneur, we provide an easy, automated and client-focused service so you can focus on working 'on' the business and not 'in' the business.

For more information, email us at info@nex.cpa