Year-End Year-End Clarity: The Tax Steps That Bring Financial Calm Into the New Year

Your year-end tax checklist and festive-season guide in one place — so you can finish the year organized and enjoy what matters most

As we wrap up 2025, it’s natural to pause and reflect on your year - your goals, transitions, and the financial questions that quietly sit on the back burner. My goal with Sensible Financial Solutions is to help you navigate these moments with clarity, confidence, and calm. This newsletter is designed to help you finish the year on strong financial footing while still enjoying the holiday season in Victoria.

You’ll find a curated list of local holiday events, year-end planning tips, and practical year-end tax planning playbook.

My Favourite Holiday Events

Celebrate the season with some of my favourite local highlights.

Festival of Trees – Bay Centre

Dates: November 14 – December 31, 2025A classic Victoria tradition featuring community-designed trees in support of BC Children’s Hospital. More info:https://www.tourismvictoria.com/events/festival-of-trees-victoria-2

Magic of Christmas – Butchart Gardens

Dates: December 1, 2025 – January 6, 2026An enchanting experience with lights, carollers, skating, and holiday displays. More info:https://butchartgardens.com/christmas/

Christmas at Craigdarroch Castle

Dates: December 3, 2025 – early January 2026

Historic holiday décor, live music, and a beautifully decorated castle. More info:https://https://thecastle.ca/plan/holiday-season/

Gingerbread Showcase - Hotel Grand Pacific

Dates: November 21 - January 4

Iconic Victoria holiday tradition, Habitat Victoria’s Gingerbread Showcase, presented by Peninsula Co-op and hosted at the Hotel Grand Pacific is back for its 17th year! This is Habitat Victoria’s premier annual fundraising event, helping local families build a foundation through affordable homeownership.

All attendees are encouraged to vote for their favourite and make a donation.

Professional and home bakers alike spend hundreds of hours interpreting the Showcase theme each year. In dozens of creative ways and with edible materials of all kinds.

Year-End Planning Tips Worth Reviewing

These are not “to-do” items for everyone -they’re opportunities to review, depending on your situation.

1. A Lesser-Known RRSP Opportunity at Age 71

If you are turning 71 this December and are still earning employment or rental income, there may be a final RRSP planning opportunity worth reviewing.

You can overcontribute up to $2,000 to your RRSP without triggering the usual 1% per-month overcontribution penalty. This works because new RRSP contribution room is generated based on your earned income for the year, even though that room only becomes officially available on January 1 of the following year.

In the right circumstances, this strategy can:

• Allow a modest additional RRSP contribution

• Create a deduction that can be used in a future tax year

• Improve tax efficiency as you transition into retirement income

This is very situation-specific and best reviewed before taking action.

2. Tax-Loss Selling in Non-Registered Accounts

If you hold investments outside of registered accounts that have declined in value, it may be worth reviewing whether tax-loss selling is appropriate.

By selling investments that are at a loss, you may be able to:

• Offset capital gains realized elsewhere in your portfolio or carryforward the losses

• Reduce taxable income

• Improve after-tax returns over time

This strategy requires careful attention to timing and CRA superficial loss rules, so it’s best considered as part of a broader investment and tax plan - not in isolation.

3. Making a Lump-Sum Mortgage Payment

For homeowners, year-end can be a good time to revisit mortgage strategy.

Making a lump-sum payment toward your mortgage can:

• Reduce your principal balance

• Lower total interest costs over time

• Shorten the length of your mortgage

There are two timing considerations:

• Year-end payment: reduces your balance before interest is calculated in the new year

• Beginning-of-year payment: reduces principal immediately, which can lower interest charges throughout the year

Which option, or both makes more sense depends on cash flow, investment opportunities, and long-term priorities.

Main Feature: Your 2025 Year-End Tax Planning Playbook

Year-end tax planning ensures you seize time-sensitive opportunities before December 31st. Coordinating contributions, deductions, withdrawals, and investment decisions now can reduce taxes, strengthen your long-term plan, and simplify the year ahead.

I’ve created a comprehensive, easy-to-follow Year-End Tax Planning Checklist that you can use to stay organized and ensure nothing is missed before December 31st. It includes:

• RRSP/TFSA/RESP rules

• Charitable giving strategies

• Capital gains/loss guidance

• RRIF planning notes

• Corporate and business-owner reminders

• A document-gathering guide for tax season

Get your copy here: https://bit.ly/3XSd7a2

Final Thoughts: Closing the Year with Clarity

As we move through December, I’m reminded that year-end clarity isn’t about reacting to headlines or making last-minute decisions. It’s about creating enough understanding to quiet the noise.

When people feel financially anxious -even when they’re doing many things right - what they’re often missing isn’t effort, but perspective. Clarity gives you the ability to pause, reflect, and move forward with intention.

As the year comes to a close, I hope you’re able to step away from the busyness, enjoy the season, and enter the new year feeling informed, prepared, and supported.

Warm wishes for the coming holiday season,

Milica