As the end of the year approaches, financial advisors can help clients save a bundle on taxes, but they need to act now, according to tax advisory firm Ernst & Young.

The firm encourages Canadians to explore the following 12 tax-savings opportunities before the end of the month.

1. Sell securities with accrued losses to shelter otherwise-taxable gains. Trades must take place by December 24 to settle in 2008.

2. Ensure interest, investment counsel fees and safety deposit box fees are paid by Dec. 31 so they are deductible in 2008.

3. All tax-deductible alimony and child-care expenses must be paid by the end of December to get a 2008 tax deduction. Also, medical expenses, kids’ fitness program costs and transit pass payment must be made by year-end to be creditable.

4. Make final charitable donations for the year.

5. Review your tax situation and consider purchasing a tax shelter to reduce your tax burden.

6. For anyone who will be 71 at the end of 2008, make sure RRSP contributions are made before Dec. 31.

7. Ensure RESP contributions have been made for children to benefit from the Canada Education Savings Grant.

8. Corporate business owners should make decisions about their final remuneration from the company.

9. For those buying business assets, do it today. By shopping early, self-employed individuals and unincorporated business owners will be able to claim depreciation for 2008.

10. Update travel logs. Employees who use employer-provided cars primarily for business may be eligible for a reduced standby charge and a lower alternate operating benefit. But they have to advise employers in writing before year-end to benefit.

11. Push purchases of long-term fixed investments until January 2009 to defer the related tax by one year.

12. Get ready to make deposits into Tax Free Savings Accounts, available beginning in 2009. A number of financial institutions will accept deposits now.

IE