Three tax Ds that matter for Canadians in 2026.

The article highlights three tax levers for Canadians in 2026: claiming deductions and credits, deferring tax to later years, and shifting income or assets within families; it gives examples such as home-based business and home office claims, registered plans like RRSPs and FHSAs, and transfers or loans to family members.

Last week the author outlined broader tax and estate planning frameworks and now focuses on three tax levers that matter most for reducing taxes in 2026. The piece groups examples under claiming deductions, pushing or deferring tax to later years, and shifting income or assets among family members. It lists common situations and paperwork that affect whether particular deductions or transfers apply. The tone is descriptive and aimed at highlighting options that affect timing and allocation of tax burdens. Key points: - The article notes that owning a home-based business can allow deductions for reasonable costs incurred to earn business income, including items like mortgage interest, property taxes, vehicle costs, computers, phones, internet and supplies. - It explains that home office expenses and vehicle costs may be deductible for employees and the self-employed, but employees generally need a signed Form T2200 and must meet work-from-home time requirements; business kilometres should be tracked to justify vehicle claims. - The piece states that interest on borrowings to earn income is generally deductible if the proceeds are reinvested, and describes replacing non-deductible debt with borrowings tied to non-registered investments to change interest deductibility. - For deferring tax, the article describes registered plans: RRSPs offer a deduction and tax deferral on withdrawals, FHSAs may provide a deduction and tax-free withdrawals for a first home if eligible, and RESPs and TFSAs shelter growth though they do not all provide immediate deductions. - It also notes that avoiding large tax refunds by adjusting instalments or payroll withholdings prevents effectively lending money to the government, and that minimizing portfolio turnover can delay realization of capital gains and defer tax. - On income shifting, the article outlines transferring funds for business use, lending to an adult family member, gifting investments to an adult child, and keeping inherited funds invested in the inheritor’s name; it cautions that attribution rules or tax authority review can affect outcomes. Summary: The article presents three main levers—deductions, deferral, and intra-family transfers—that influence when and whose hands income is taxed, and gives specific examples and paperwork considerations related to each. Undetermined at this time.