1. RRSP

RRSP deduction limits should be reviewed to minimize the possibility of overcontribution. It may be useful to review your bank statements, etc., to ensure that neither you nor your broker has forgotten RRSP contributions. Under normal circumstances, your broker will ensure that the RRSP receipts are sent, but it is not unusual for these receipts to arrive late or be misplaced.

2. Loan Interest

Loan interest incurred when borrowing for investment purposes is tax deductible. Documentation outlining the date of the loan, the principal and interest, and the term should be available to allow preparation of an amortization table. Many financial institutes provide summaries of interest on loans or lines of credit. Providing this documentation along with an explanation of the reason for the loan or line of credit will allow your tax advisor to determine whether the interest is tax deductible.

3. Investments

Information on carrying costs, such as brokerage, administration fees, and capital gains and losses in your portfolio is definitely necessary for tax preparation. The original cost of investments purchased many years ago may be difficult to determine. Where possible, find the original purchase details; but, if this is not possible, determine an approximate purchase time to allow research into the cost at that time.

4. Moving Expenses

Expenses associated with a move to a new residence at least 40 kilometers closer to a new work location may be deductible. Such expenses include, but are not limited to, travel costs, moving costs, and real estate fees. If in doubt about the deductibility of moving expenses, provide all of them to your tax advisor. The inclusion of receipts allows your advisor to determine not only those expenses that are deductible but also will provide a starting point for questions about possible additional deductions.

5. Rental Property

Individual taxpayers who own rental property should summarize income from tenants as well as all associated expenses. Reviewing last year's tax return will remind you of necessary information. Be sure to provide your tax advisor with high-dollar-value receipts that detail just what was purchased. Your tax advisor can then provide guidance as to which expenditures were capital in nature and which may be perceived as personal. This step could prevent future tax squabbles with the Canada Revenue Agency.

6. Students

Receipts for tuition fees may be deductible and, therefore should be retained because they provide the required information that forms the basis for the education and textbook amount. If the student's income is insufficient to make use of all the available deductions, the unused portion up to $5,000 may be transferred to a parent, grandparent or spouse (or the parent or grandparent of the student's spouse or common-law partner).

Full-time students who must move to attend an educational facility should keep a record of all moving expenses. Deductions are available for moving expenses incurred at the beginning of each academic period provided the move is more than 40 kilometres closer to the post-secondary institution. The costs of moving back after the summer break might be deducted as well.

7. Installment Payments

Tax installment receipts should be kept available. If paid at a financial institution give them to your tax advisor. Providing proof of payment to your advisor will reduce the chances of overpayment and the subsequent difficulty of obtaining a refund of the overpayment. The CRA may inadvertently apply overpayments to the GST account of self-employed individuals thus adding to the refund confusion.

8. Medical Expenses

Retain receipts for all medical expenses. Low income individuals who require attendant care in a private facility may be able to deduct some of these costs. If you are self-employed and purchased a private health services plan from a third party, the premium is deductible as long as equivalent coverage is available to permanent full-time and arm's-length employees. Self-employed individuals and their spouses can each deduct up to $1,500 plus $750 for each child. Should this option be used, however, the business cannot deduct medical premium costs. Out-of-country medical expenses are deductible as well as premiums paid to private insurers within the United States for medical and health care coverage.

9. Charitable Donations

To be deductible against taxable income, donation claims must be supported by receipts from a registered charity. You may carry forward and claim for up to five years any donations not claimed in a previous year.

Taxpayers can expand their donations beyond the accepted religious organizations and local charities to include registered Canadian amateur athletic associations; prescribed universities outside Canada; certain tax-free housing organizations in Canada; Canadian municipalities; the United Nations (or its agencies); or charities outside Canada to which the Government of Canada has made a donation.

Generally you may claim donations to US charitable organizations as long as they do not exceed 75% of your US income.

10. Income and Eligible Deductions

It is the taxpayer's responsibility to report income from all sources and provide documentation supporting claims for deductible expenses. Most taxpayers rely on employers to provide the appropriate T4s or T4As for employment information, financial institutions for T3s and T5s, unions to send the appropriate slips and various other third parties, such as child care facilities, to send detailed or summary statements. Taxpayers should maintain all documents pertaining to employment and investments received during the year; during January and February they should take time not only to ensure the aggregate of detail agrees with the summaries received but also to determine whether all information is complete.

Ensuring that taxes are minimized is every taxpayer's right and responsibility. Why not use the 10 areas mentioned above as a starting point to review any 2008 financial transactions that may impact your tax filing?

If you realize that you missed deductions in earlier years, you can ask the CRA to adjust returns filed for the 10 preceding years.

An early review may save you hundreds, if not thousands of dollars.