As 2019 comes into full swing, it’s bringing some tax changes with it that will have some big impacts on Canadians and small business owners. With income tax being the top expense for most Canadian families, it’s worth it to be aware of what’s going to change in 2019. Read on as Liu & Associates highlights a few of the major changes you’ll see in 2019 when it comes to your income taxes. Why Do Tax Rules Change? Taxes can change for a number of reasons. People often see changes to taxes when a new government comes into power, when ...Read More

Coming into a lump sum of money suddenly, be it big or small, can be jarring to say the least. A sizable inheritance can represent a life-changing opportunity, if managed properly. Follow these five tips to make sure you’re managing your money smart and effectively to keep you financially stable for years to come. 1. Take A Step Back Because an inheritance usually comes with a loss, it’s important for you take time to deal with your grief. You don’t want to be making any major financial decision when you’re in an emotional haze. The second thing you need to ...Read More

Whether it’s a staff holiday party, birthday celebration or just a year end gift, there are rules surrounding giving your employees gifts. Follow the rules, and both you and your employees will benefit on your tax return. Gifts that follow the guidelines set out by the Canada Revenue Agency (CRA) are not only tax deductible for you as the employer, but your employees won’t have to declare the cost of the gift as part of their taxable income. Don’t get dinged at tax time just because you were trying to recognize your employees. Read on to learn about the tax ...Read More

Taking the next step with your business can be just as vital to its success as your first day of operation. As any owner knows, finances are central to commercial viability-- but there is much to consider when growing your business. Keep reading for Liu & Associates’ introduction to the complex financial needs of business growth. #1: Does your business have the appropriate funding? Unless you have considerable savings or borrowing power, growing your business requires a considerable influx of capital. If you are searching for investors or elsewhere for funds, make sure they honour your values and share the ...Read More

Everyone thinks their pet is the best… and they are right! This is common knowledge for most animal lovers and owners, but can your animal companion actually earn you tax credits? The short answer is no: Bella, Fluffers or Mr. Pickles likely does not qualify, no matter how good they are at cuddling or looking cute. Still, there are some cases where a portion of buying, training or feeding an animal can be used as a deductible. Keep reading for Liu & Associates’ guide to some of these benefits! ANIMAL THERAPY OR SERVICE ANIMALS Usually listed under medical expenses on ...Read More

One of the most common misconceptions people have about family trusts is that they’re only for incredibly well-off families. That couldn’t be further from the truth. Keep reading for our introduction to family trusts and how they can be beneficial to you! What is a family trust? A trust fund or family trust is a legal agreement two parties in regards to assets to be passed on. A trust can contain money, stocks, real estate, and/or other assets. There are three parties involved in establishing a trust fund: The settlor or trustor - this is the person or entity who ...Read More

  While freelancers and business owners may be quite familiar with tax credits, benefits and deductions-- it is no guarantee that you are getting everything that could be owed to you. Also, these opportunities often apply to anyone filing taxes… even if they did not earn any professional income in a given year. Keep reading for our top seven most forgotten and overlooked tax credits, benefits and deductions!   #1: Income-related costs No matter how you earn your living, if you make taxable income-- you are eligible to claim certain costs incurred in pursuit of it. While self-employed taxpayers are ...Read More

When it comes to running a business, a new business owner may overlook the fiscal year or tax year. While many business owners may default to utilizing the calendar year as their fiscal year, there may be advantages to choosing a different time period. What’s the difference A calendar year is relatively self-explanatory: January 1 to December 31. A fiscal year be any chosen start and end date within the calendar year as long as it is no longer than 53 weeks or 371 days. For example, a business that incorporates on July 1, 2018 could choose a year end ...Read More

It’s no secret that the cost of a university education continues to increase every year. Planning for your child’s education now allows you to save as much as possible to give them a step up when it comes to post-secondary costs. What is an RESP? RESP stands for Registered Education Savings Plan. These are plans that allow parents to put aside money for their child’s education. RESPs aren’t limited to just a child’s parents. Any adult is able to open up and contribute to an RESP on behalf of a child. The first iteration of an RESP dates back to ...Read More

Nowadays, business and their employees are connected more than ever-- allowing increased flexibility when, where and how people complete their work. Also there is a rising number of people whose main income is self-employment, which has blurred the lines between are personal spaces and the workspace. Income tax law has always accounted for those that make their living from their living room… or anywhere else in the home for that matter! If you work from home or are self-employed, do not overlook the credits you can claim on your income tax return. For more information, read on for four fantastic ...Read More