Year-End Tax Checklist for Small Business (Ottawa CPA Guide)
7 things to check before December 31. Ottawa CPA Majdi Ibrahim covers RRSPs, tax-loss selling, donations, and year-end planning.
By Majdi Ibrahim, CPA | Majdi Ibrahim, CPA Professional Corporation | Ottawa, Ontario
For most individuals and many small businesses, December 31 is a meaningful deadline — not because anything is "due" that day, but because several tax and planning opportunities only exist before the calendar flips. Once January 1 arrives, some of these windows close for the year.
Here are seven things worth a look before the year ends.
1. Check Your RRSP Contribution Room — But Know the Real Deadline
RRSP contributions for a given tax year don't actually need to happen by December 31 — you generally have until 60 days into the following year (typically around March 1) to make contributions that count for the prior year.
So why mention it here? Because December is a natural moment to actually look at the number — and decide whether a contribution makes sense given how your income shaped up this year. Your latest Notice of Assessment is usually the best place to confirm your actual RRSP deduction limit before contributing — it's more reliable than estimating off a rough percentage. Waiting until the last few days in February to figure this out leaves less room to think it through.
If you've opened a First Home Savings Account (FHSA), it's worth knowing FHSA room works a bit differently from RRSP room: FHSA participation room is tied to the calendar year, while RRSP contributions get that first-60-days grace period. If an FHSA is part of your plan, December is a relevant checkpoint for that too.
2. Review Capital Gains and Losses in Non-Registered Investments
If you've sold investments at a gain this year — or you're sitting on investments with unrealized losses — December is the time to think about whether tax-loss selling makes sense. Selling an investment at a loss before year-end can offset capital gains realized earlier in the year, reducing the tax on those gains.
This needs to happen with enough time for the trade to settle before December 31 — don't wait until the final trading day of the year to ask about this. There are also rules around repurchasing the same investment too soon afterward (the "superficial loss" rules) that can disallow the loss if not handled carefully.
3. Make Charitable Donations You're Planning to Claim This Year
Charitable donation tax credits are claimed based on the year the donation was made — so a donation made January 2 doesn't help this year's return, even if you were "planning" to make it in December.
If charitable giving is part of your annual tax picture, December is the last call to get donations made (and receipted) for the current year. Keep the official donation receipt — and it is worth knowing that donations don't always need to be claimed in the year they're made; they can sometimes be carried forward if that's more advantageous for your overall tax picture.
4. For Incorporated Business Owners: Review Your Salary/Dividend Mix for the Year
If you're an incorporated business owner, December is a natural checkpoint to look at how you've paid yourself this year — salary, dividends, or a mix — and whether any year-end adjustments make sense before the books close.
This ties directly into the broader incorporation question: salary creates RRSP room and CPP contributions, while dividends generally don't. December is also a good moment to think about whether a bonus declaration before year-end might make sense for your corporation, depending on your fiscal year-end and overall plan.
5. Confirm Your Corporation's Fiscal Year-End — and What's Due When
If your corporation's fiscal year-end is December 31, this is your reminder that the usual countdown starts — T2 filing six months out, balance owing generally due earlier. If your fiscal year-end is a different date, December is still a good moment to do a general check-in on where things stand for the year, rather than waiting until your actual year-end approaches.
6. Gather Up Loose Ends From the Year — Receipts, Mileage Logs, Statements
This one isn't glamorous, but it's the difference between a smooth tax season and a stressful one. Before the year ends:
- Make sure mileage logs are up to date (not "I'll reconstruct it later")
- Pull together major receipts that might otherwise get lost — equipment purchases, professional fees, larger expenses
- Check that any reimbursements (CMPA for physicians, for example) have matching records
- If you've had any major life or business changes this year — new address, new bank account, business structure changes — make a note so they don't get missed
None of this is a "deadline" in the formal sense, but doing it in December, while the year is still fresh, is much easier than doing it in April.
7. Think About Next Year, Not Just This Year
The most useful year-end review isn't just "how did this year look" — it's "does anything need to change going into next year?" New instalment requirements starting? A salary/dividend mix that should shift? An incorporation conversation that's been on the back burner? RRSP or FHSA room that's been building up? A bookkeeping cleanup that keeps getting pushed off?
December is a natural moment for this kind of forward-looking check-in — not because anything is urgent, but because it's easier to plan with a few weeks of runway than to react in the moment next year.
A Year-End Check-In, Not a Year-End Scramble
None of the above needs to be a fire drill — the goal is simply to use the natural pause at year-end productively, while there's still time to act on anything that matters.
Majdi Ibrahim, CPA works with individuals, self-employed professionals, and incorporated business owners across Ottawa — including year-end check-ins to make sure nothing falls through the cracks.
Book a consultation at www.treehousecpa.com
This article is provided for general informational purposes only and does not constitute personalized tax advice. Deadlines and rules are subject to change. Please consult a CPA for advice specific to your situation.
