COVID-19 Tax Implications

The team at Liu and Associates LLP want to assure you we are closely monitoring the COVID-19 situation and recognize it is truly a global crisis and is constantly changing. This is an unprecedented time for all of us, and we feel the need for everyone to work together to weather this storm. We want you to know you have our commitment to continue providing you with the services you depend on, including up to date economic information. You are not alone; we are in this together. So, how are we working together to support each other? Health & Safety ...Read More

How Incorporating Your Business Can Affect Your Taxes

You own a small business and you’re ready to take it the next level. Incorporating your business carries many benefits including easier access to capital, enhancing your business’s credibility and creating an enduring legal business structure. It also provides protection from personal liability, meaning that you can safely separate your personal assets from the business. Does this mean you can protect your personal taxes as well? Read on to learn how you can avoid having your taxes negatively affected by your business’s activities as well as tax benefits from incorporating and how to file your corporate income tax return: What ...Read More

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)

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

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

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?

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

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

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

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