Family Trusts 101

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

7 Most Forgotten Tax Credits, Benefits and Deductions

  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

What’s in a Year: Fiscal vs Calendar Years

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

RESPs: What you should know

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

Working from Home: What can you claim on your tax return?

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

ASK AN ACCOUNTANT: 4 Common Cryptocurrency Questions & Concerns

  Bitcoin, Ripple, Dogecoin, Etherium, Litecoin, Tether-- in most cases you will either know all of these titles… One of them... Or none at all! Most people have at least heard the term “cryptocurrency,” but their grasp on the real definition might be limited. It is complex at first glance, but the cryptocurrency market works most like investing in a stock market. If you have questions or concerns about “crypto,” read our FAQ below and then contact or visit Liu & Associates!   Q: “Do I have to claim cryptocurrency earnings on my income tax return?” A: Yes; the Canada ...Read More

How Your Business Can Benefit from a Bookkeeper

Bookkeepers and accountants are similar but they have different duties, even though the terms are often used interchangeably. Qualifications and education aside, just how much the two professions handle the scope and complexity of a business’ finances is the main division between them. If you are unsure if you require the services of an accountant or a bookkeeper, refer to Liu & Associates’ related articles to find out more. Once you have identified your business and financial needs, refer to the information below to learn how your business can benefit from a bookkeeper.   BOOKKEEPING COSTS Only you can decide ...Read More

3 QUESTIONS: So You’ve Been Selected for a Tax Audit

  As you may know, sometimes individuals or businesses are selected for an audit by the Canadian Revenue Agency (CRA). What you may not realize are the varied consequences that can occur should you not be adequately prepared. For a start, consider Liu & Associates’ three most common questions about tax audits. After that, bring your questions or concerns to one of our financial professionals today!   “How was I selected for an audit?” CRA agents do not select audit candidates at random, they use a system of risk assessment that identifies returns that could be considered “high risk.” Some ...Read More

What age should you start saving for retirement?

Roughly half of all Canadians have some form of savings that they plan to use in retirement, not including any pension or social security that may (or may not) be available to them. While this may seem like a lot, it is not nearly enough! Many people procrastinate the process of putting away paychecks-- even if you have a sizable savings account, your money could be earning you more than the modest interest offered by most banks. Keep reading for a few retirement savings tips from Liu & Associates!     EARNING POTENTIAL Throughout all professions and ways to make ...Read More

GLUTEN-FREE TAXES: Claiming GF Costs as Medical Expenses

If you are unfortunate to suffer celiac disease or know someone who does, you know the serious consequences all too well. Eating is something we do everyday, so not only is it difficult to permanently adjust your diet: it is expensive too! Even the average consumer knows that gluten-free (GF) items are more expensive than the alternative. Despite popular diets, the Canada Revenue Agency (CRA) knows that eating gluten-free may be a medical requirement-- in these cases, you can claim these costs as a medical expense. Does your household qualify for this credit? Read Liu & Associates’ blog below to ...Read More