LEEWARD TAX · Practical Canadian tax updates for Ontario families and businesses
WEEKLY BRIEFING | 26 OCTOBER 2026
COVER STORY
Your 2026 Tax Return Starts Before December 31
A practical year-end review for individuals and families, before calendar-year opportunities expire.
Tax filing happens next spring, but several decisions belong to 2026
Most Canadians will not prepare their 2026 return until next spring. However, FHSA contributions, charitable gifts and many transactions must occur by 31 December to affect the 2026 tax result.
The goal is not to calculate every line today. It is to separate actions that must happen this calendar year from those, such as most RRSP contributions, that may still be completed during the first 60 days of 2027.
31 DEC
FHSA, donations and 2026 transactions
FIRST 60 DAYS
Most 2026 RRSP contributions
30 APR 2027
Most individual returns and balances
Three dates to distinguish
Date | Generally affects | What to do | Why it matters |
|---|---|---|---|
31 Dec 2026 | FHSA and donations | Complete applicable actions | Calendar-year cutoff |
First 60 days | RRSP contributions | Verify available room | Later contribution window |
30 Apr 2027 | Most T1 returns | Organize records now | Avoid filing-day gaps |
Any time now | Life and account changes | Update CRA information | Protect benefits and accuracy |
Do not estimate registered-plan room from income alone. Review the latest Notice of Assessment or CRA account before contributing.
Your Seven-Point Year-End Tax Review
1. Charitable donations
Complete intended 2026 gifts before year-end and retain official receipts. Eligible donations may generally be carried forward for five years, and spouses should consider whether combining claims produces a better result.
2. Medical expenses
Review receipts and insurance statements for:
Prescription and practitioner costs.
Dental, vision and eligible travel expenses.
Amounts paid for eligible dependants.
The claim may use any 12-month period ending in 2026 if the expenses were not claimed previously. Selecting the strongest period can matter more than simply using January through December.
3. FHSA contributions
FHSA contributions follow the calendar year. An eligible contribution must be made by 31 December to count as a 2026 contribution. Unlike an RRSP, an FHSA has no first-60-days extension.
4. RRSP contribution room
Review the latest Notice of Assessment before contributing, especially where there is unused room, a workplace pension adjustment or an earlier contribution that has not yet been deducted.
A contribution does not have to be made by 31 December to qualify for 2026. Starting now reduces the risk of an excessive last-minute contribution.
5. Investments and transactions
Review realized capital gains and losses.
Confirm settlement timing before trading.
Consider superficial-loss rules before repurchasing.
Do not let tax override the investment decision.
A transaction may affect another family member, a controlled corporation or a registered account. Obtain advice before acting on a loss-harvesting plan.
6. Life changes and CRA information
Marital status, address and direct deposit.
Children, shared custody or a death in the family.
Canadian residency or a move between provinces.
New rental, foreign or self-employment activity.
7. Build one organized 2026 file
Income | Deductions | Credits | Changes |
|---|---|---|---|
Employment, investments, rental and foreign. | RRSP, FHSA, employment and carrying charges. | Medical, donations, tuition and disability. | Address, family, dependants and residency. |
BOTTOM LINE
Review the items that must be completed by 31 December while there is still time to act. Keep supporting documents even after CRA issues the original assessment.
This Week in Canadian Tax
CORPORATE TAX
Businesses can now manage certain CRA debts online
CRA has expanded Manage Balance to My Business Account. Business owners, including directors and officers, can review options for outstanding payroll, GST/HST and corporate income tax balances without first contacting a collections officer.
Eligible users may make a payment, request a payment arrangement based on the business's finances or ask CRA to call when more help is required. All required returns and current obligations still need to be addressed.
The service is not available through Represent a Client. Accountants and bookkeepers cannot establish the online arrangement for a client; the owner or authorized director must sign in directly.
PERSONAL TAX
CRA is preparing a new pre-filled return service
CRA is developing a free service that uses information already on file to prepare a preliminary 2026 return. Invited taxpayers will review the information, correct it and add missing items before submission.
The initial service is aimed at people with lower income and a simple, generally non-taxable situation. Potential invitees may need to file their 2025 return by 31 October, have a CRA account and select electronic mail.
A pre-filled return still requires review. CRA may not have complete information about cash or foreign income, medical costs, donations, rent, childcare or family changes.
⚠️ IMPORTANT DEADLINE
2 November 2026 | GST/HST returns and instalments
Because 31 October falls on Saturday, amounts normally due that day are generally on time if received by Monday, 2 November. This may include September monthly returns, July-to-September quarterly returns and applicable GST/HST instalments. File even when activity or net tax is nil.
THIS WEEK'S CHECK | Begin the 2026 year-end review, assess business CRA balances and confirm GST/HST obligations due 2 November.
Tax Court Highlight
BONDE v. THE KING, 2026 TCC 180
Calling paid work "personal" did not make the income tax-free
Commercial activity remained taxable, and gross-negligence penalties were upheld.
$830,000 income over three years · Nil reported · Penalties upheld
The facts
The taxpayer worked as a concrete finisher, bid for jobs and sometimes paid assistants. He earned approximately $830,000 over three years but reported nil business income, arguing that the work was a personal endeavour without a subjective pursuit of profit.
The Court's decision
The Tax Court dismissed the appeal. Concrete finishing performed for contracted fees was clearly commercial activity, not a hobby or personal pursuit. The Court also upheld gross-negligence penalties.
Ordinary commercial receipts were income.
The taxpayer's label did not change the activity.
The omission involved substantial amounts.
Questionable promoted advice was not independently checked.
Why the decision matters
A seminar, promoter or informal theory does not remove the reporting obligation. Where a position excludes substantial ordinary receipts, failing to obtain reliable advice can support penalties in addition to the tax.
Report income from commercial work.
Verify unusual positions independently.
Keep contracts, invoices and expense records.
Correct past omissions before reassessment where possible.
Calling commercial work a personal activity does not make the income tax-free.
This week's action list
Start one organized 2026 tax-document folder.
Review donations, medical expenses and FHSA room.
Confirm RRSP room before contributing.
Review investment transactions before year-end.
Submit GST/HST obligations due 2 November.
Verify unusual income positions independently.
This newsletter provides general information only and is not legal, accounting or tax advice. Tax outcomes depend on the facts and applicable law; obtain advice for your circumstances.