When Do I Need to Report Rental Income?

Renting property seems like a lucrative entrepreneurial opportunity as more and more individuals are renting out portions of their home and even offering space through popular accommodation services such as Airbnb. Acquiring rental income is a great way to offset the cost of a mortgage or justify an investment in a secondary property. However, if you are renting your property to a third party, you are required to report your rental income on your tax return. While it may be tempting to not disclose this income to the CRA (Canada Revenue Agency), not doing so can lead not only to ...Read More

Does Declaring Corporate Bankruptcy Affect Me or My Credit?

Bankruptcy may seem like a golden ticket when you are looking at clearing debts from your creditors – but there are many things to think about before you file for bankruptcy, especially if you are doing so for your corporation. One such concern is whether or not declaring corporate bankruptcy will affect your personal credit. When it comes to owning a corporation, as opposed to a sole-proprietorship or partnership, you are not legally responsible for business debts. However, there are exceptions for which you can be personally liable. Before explaining these exceptions, it’s best to understand the difference between corporate ...Read More

What Are Tuition Tax Credits? (And How You Can Claim Them)

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In 2017, the Canadian government eliminated the federal educational and textbook tax credits. However, they did not eliminate the tuition tax credit, allowing students the opportunity to apply tuition costs toward owing taxes. While it may not seem like a huge tax break, it can relieve a significant financial burden on students who balance post-secondary studies with working and making an income. If you are a student attending, or planning to attend, a post-secondary educational institution, you are going to want to make sure you take full advantage of this tax credit. What is the Tuition Tax Credit? The tuition ...Read More

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

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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

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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?

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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

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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

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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

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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

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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