What Do I Do After Declaring Personal Bankruptcy?

Did you know that the average Canadian household owes close to $1.78 for every dollar earned? It's no wonder debt is a financial issue for Canadians, with many of them facing owing amounts so high that there is no hope of paying it off. If you find yourself in this type of financial crisis, bankruptcy is an option for clearing your debts. However, it comes with certain obligations you are expected to fulfill. What is Bankruptcy? Bankruptcy is a legal process for individuals who seek relief from some or all debts when they cannot repay these debts to creditors. Filing ...Read More

New COVID-19 Protocols

Last updated August 11, 2021.   To all our clients, we hope that this finds you well and safe. Like all of you, we have been affected in many ways by the pandemic as well so please know that we are here to stand with you and to give you support in what ways we can. In hopes of protecting our clients and staff, we are proud to announce that all our staff are fully vaccinated in order to provide you with the safest environment possible.  As well, we have measures which include: We are offering meetings by zoom, teams ...Read More

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?

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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