8 New Year’s Resolutions to Save You Money in 2020

money-back-up-4518407_960_720

When it comes to making New Year’s resolutions, there seems to be two goals everyone tries to commit to: get in shape and save money. While our professional accountants at Liu & Associates may not be able to help you tone up your beach body, we can definitely address the goal of saving money. The idea is to start small and to not overwhelm yourself with financial goals. Consider the following 8 resolutions you can try this year to begin saving money and brightening your financial future: 1. Create a Budget The best way to keep your spending and saving ...Read More

5 Things You Didn’t Know Were Tax Deductible

calculator-428294_960_720

Each year many Canadians loathe the approach of tax time and worry about receiving a hefty tax bill after everything is submitted and filed. Fortunately, there are many tax deductions available to Canadians - most you probably haven’t even heard about. The accountants at Liu & Associates know taxes and want to help you save money every year. Here are 5 costs you didn’t know were tax-deductible: 1. Child Care Expenses Most Canadians know that childcare expenses can be claimed on income tax, but that deduction extends beyond just daycares and in-home sitters. Hired caregivers, day nursery schools and centers, ...Read More

What Does It Mean To Incorporate a Business?

business-3152586_960_720

If you run a small business but want to develop your company into a serious enterprise, you should consider the process of incorporation. While incorporation involves a whole new aspect of accounting and tax preparation, as well as an application process, there are innumerable benefits to incorporating a small business. What is Incorporation? Incorporation, often abbreviated as “inc.” in the United States and Canada, is the legal process of forming a legal entity, or corporation, which is then recognized by law. This process then separates a company’s assets and income from those of the owners and investors. How To Incorporate ...Read More

How to Choose an Executor for Your Will and Estate

contract-945619_960_720

When creating a will, there is more to consider than simply what goes to whom. After you are gone and passed, someone will be responsible for executing your will. Although you will not be around for the aftermath of dealing with your estate, you want to make sure you appoint the right person for the job - and choosing that individual can be a stressful and confusing endeavor. What is an Executor? An executor is the person responsible for following through on your will after you have died. This individual is in charge of sorting out your finances,  making sure ...Read More

The Benefits Of Having A TFSA

money-2180338_960_720

In 2009, Canada introduced a unique way for Canadians to invest and save money - tax free! Known as a TFSA, the Tax Free Savings Account is a flexible and simple way to grow a savings account. What can you save for? Basically, anything you can think of: What is a TFSA? A TFSA is a tax free savings account available to Canadians who are 18 years of age or older. As its name suggests, TFSAs are completely tax free. This means that savings are placed into an eligible investment and grow tax free. All interests, dividends and capital gains ...Read More

Bookkeeping for Nonprofit Organizations

an-edmonton-accountant-using-a-calculator

Even though nonprofit organizations do not focus on generating an income, it is still important to have proper bookkeeping habits to ensure the organization’s success. Understanding tax implications, as well as properly recording and tracking financial data, will help you to run a successful nonprofit. This will enable you to meet your goals and supports your cause. What is a Nonprofit? A nonprofit is an organization that focuses on furthering a social cause or shared goal. They do so by using its surplus of revenue to aid these causes and goals instead of distributing its income to shareholders, leaders or ...Read More

Taxes After 65

a-retired-woman-in-a-park

Turning 65 is a significant milestone in every Canadian’s life. With the changes in health and lifestyle also comes changes in financial income and taxes. Understanding what these changes are and how to prepare for them is important in ensuring your taxes are done properly and without error. Liu & Associates is here to help you understand exactly what changes tax-wise when you reach the age of 65. What Changes After 65? Once you turn 65, you are eligible for more tax benefits than younger taxpayers. These include a claimable age amount, pension income amount, medical expenses and other federal ...Read More

Maximizing Your Charitable Donation Credits

american-coins-sitting-in-a-jar

The Canadian government encourages its population to give generously by offering a Charitable Donations Tax Credit (CDTC). This tax credit is in existence for those who donate to registered charities. A donation is anything considered to be a gift in which nothing is given in return. These include money, assets or objects of value. The CRA (Canada Revenue Agency) allows all Canadians to claim up to 29% of all donated amounts. Depending on your province of residence, you may be eligible for up to an additional 24% of all donated amounts. The CDTC is a non-refundable tax credit. This means ...Read More

Common Tax Mistakes Small Businesses Make

business-drawings-on-a-paper

Small businesses are taking the world by storm as more and more people opt to work for themselves and create their own legacy. With growing businesses come growing pains and many small business owners are prone to making many mistakes - especially when it comes to taxes. If you are a small business owner, or are thinking about starting your own business, avoid the hassle of tax-time headaches by avoiding these common mistakes: 1 Not Keeping Receipts If the CRA sees any amounts on your claim that seem a bit too high or suspicious, they are entitled to perform an ...Read More

How to Deal With Tax Collection Actions

a-calculator-surrounded-by-euros

Owing money to the Canada Revenue Agency (CRA) is not like owing money to any other debt or creditor. The CRA and its Collections Department is empowered by laws to collect on your debt. This means they negotiate differently than other creditors - they have the means to be more aggressive when working out a payment plan. Each year after you file your taxes, the CRA sends a Notice of Assessment detailing the information of your return. If you owe money on that return, you have 30 days from the time of the assessment to pay the amount owing. The ...Read More