How Much Should My Business Donate to Charity This Year?

businessman donates to charity on phone while sitting at desk

Charitable giving is an amazing opportunity for Canadian businesses to support causes that matter most to them. Donating to charity is an excellent way for your business to connect with your community and improve team morale among your employees. It can also have financial benefits as well when it comes to corporate tax planning. Here is more information on charitable giving and how much your business should donate to charity this year: How Does Charitable Giving Affect Corporate Taxes? Tax Deductions Unlike personal taxes, a donation made by a corporation can be used as a deduction against the business’s income ...Read More

How Much Should I Donate to Charity This Year?

woman donating to charity on her laptop

Did you know that Albertans gave around $1.47 billion to charities in 2013? Out of all the provinces, Alberta taxpayers had the highest median charitable donation amount in the country! Although there are many reasons you should make a charitable donation, getting relief on your annual personal taxes is one you shouldn’t ignore. Charitable tax credits can help you reduce your owing tax amount, and we can help you figure it out! Liu & Associates is here to help you understand how charitable giving affects taxes and how much you should donate to charity this year: How Does Charitable Giving ...Read More

What To Know About Being A Landlord in Alberta

couple of tenants shaking hands with landlord, receive house key, making rent deal

Becoming a landlord in Alberta requires a significant amount of responsibility - and a lot of money. If you’re wondering if it’s worth it to become a landlord, Liu & Associates is here to tell you what it takes. From how to be a good landlord to how rental income affects your taxes, this guide will help you determine if becoming a landlord is the right choice for you! Is Being A Landlord Worth It Financially? Becoming a landlord begins with investing in real estate, which involves factors such as a down payment and mortgage, as well as repairs and ...Read More

What To Know About Rental Income in Alberta

In Canada, rental income is the income you earn from a rental property that you own and rent to someone else. Typically, rental income comes from renting apartments, houses, and rooms but also includes office space and other commercial properties. In this article, we are going to discuss everything you need to know about rental income in Alberta as an individual (not a business or trust). While earning an income rental seems like a quick and easy way to make more money, there are many factors that you have to take into consideration, such as how to determine your rental ...Read More

Avoiding a CRA Audit When Self-Employed

woman sitting at home office desk with cup of coffee

Tax audits can be a stressful ordeal. The CRA conducts audits based on risk assessments and considers self-employed individuals to be risky when it comes to filing taxes. Rest assured that many self-employed individuals who experience audits have done nothing wrong - they simply caught the attention of the CRA, who wants to ensure that tax legislation and compliance are maintained. However, there are ways that your small business can properly file its taxes and avoid a CRA audit! Reasons Self-Employed Individuals Get Audited As someone who is self-employed, there are things that can trigger an audit with the CRA. ...Read More

Common Audit Triggers in Canada

Businesswoman Analyzing Taxes With Magnifying Glass

Here at Liu & Associates, we know that audits are no fun. Whether you are an individual or run a business, this can be a stressful situation. The CRA does not select audit candidates at random. Instead, they use a system of risk assessment that flags returns considered to be “high risk.”  Fortunately, there are certain audit triggers you can avoid in order to circumvent a tax audit. Here are the most common ones in Canada: Unusual Deductions or Changes When you file your taxes with the CRA, they will look for consistencies in your return compared to other years. ...Read More

What Business Expenses Are Tax-Deductible?

Business woman using calculator and writing make note

Do you know what tax deductions your business is eligible for? When tax season comes around, it’s important to make the most out of eligible deductions to save you money and help your business grow! However, before you start claiming whatever you can for your business, be sure that all deductions are supported by original invoices and paperwork. Doing so is the best way to avoid an audit or any issues if you are audited. Eligible Expenses to Claim As a general rule, businesses can claim expenses that maintain the business and ensure that it is operational. And there is ...Read More

Tax Guide for Small Businesses

female small business owner using laptop and looking at camera in shop

Paying your taxes as an individual is one thing but once you start running a small business, it’s a whole different game! There are many aspects of a small business to take into consideration when it comes to filing your taxes from what you can deduct to how to manage employee payroll. But don’t worry, we have you covered! Liu & Associates is a knowledgeable accounting firm with years of experience filing small business taxes. Let our expertise guide you through the process with this tax guide for small businesses: Common Deductions for Small Businesses While there are many deductions ...Read More

When To Consider Corporate Restructuring

Image of business partners discussing documents and ideas at meeting

Corporate restructuring is a great opportunity to examine your business models and create a plan that will facilitate growth and optimize your business for the long term. Corporate restructuring is a process that significantly modifies the financial and operational aspects of a company. While this action is typically taken when a company is facing financial hardships, a company doesn’t have to be in distress to benefit from a restructuring plan. A corporate restructure even when your business is successful can have major benefits! Overall, corporate restructuring is done to modify a company’s operation, structure, or debt to limit financial harm ...Read More

Corporate Tax Planning: 5 Things To Know

Top view of Finance business people or accountants point to the graph and use a calculator to calculate company income, expenses, taxes, and employee bonuses

When you own a corporation, proper tax planning plays an essential role when it comes to making strategic decisions. The main goal is to increase your business’s tax efficiency and remain competitive in your industry. Incorporating proper tax planning into your regular operations ensures that your company is run legitimately. It also allows you to reduce your tax costs and benefit from higher earnings. Unlike personal tax returns, which are relatively simple to prepare, corporate taxes are complex, and not planning them properly, or trying to do them yourself, could result in costly mistakes. What is Corporate Tax Planning? When ...Read More