Tax season countdown: Key tips to know – Michelle Munro and Jacqueline Power

In this episode of FidelityConnects, hosts Pamela Ritchie, Michelle Monroe, and Jacqueline Power dive into critical tax season insights for advisors and clients alike. With the April 30th filing deadline approaching, the discussion centers on essential tax planning strategies, including maximizing deductions and credits such as RRSP contributions, child care expenses, charitable donations, and home office claims. The team emphasizes the importance of gathering T-slips early and organizing documentation to avoid last-minute stress. Key topics include leveraging tax-efficient investment structures like class funds and tax-smart cash flow trusts to reduce taxable income and protect benefits like OAS. The episode also unpacks the complexities of leveraged investing, where interest on borrowed funds used for income-producing investments can be tax-deductible—provided there's a clear paper trail and the investments have income potential. Additionally, the hosts clarify advisor fee deductibility across different fund structures (Series A/B, I-O, F) and highlight the importance of planning ahead for in-kind charitable donations, which allow donors to avoid capital gains tax while receiving full receipts. A major focus is on the evolving bear trust reporting rules, now deferred to 2026 with significant exceptions for small and related-party trusts, reducing the burden on families and advisors. The episode concludes with a strong call to action: advisors should act as quarterbacks, guiding clients early and consistently throughout the year to ensure tax efficiency and financial wellness.