Accounting Advice Edmonton | Blog | Liu & Associates

Taxes After 65

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

Maximizing Your Charitable Donation Credits

The Canadian government encourages its population to give generously by offering a Charitable Donations Tax Credit (CDTC). This tax credit is in existence for those who donate to registered charities. A donation is anything considered to be a gift in which nothing is given in return. These include money, assets or objects of value. The CRA (Canada Revenue Agency) allows all Canadians to claim up to 29% of all donated amounts. Depending on your province of residence, you may be eligible for up to an additional 24% of all donated amounts. The CDTC is a non-refundable tax credit. This means ...Read More

Common Tax Mistakes Small Businesses Make

Small businesses are taking the world by storm as more and more people opt to work for themselves and create their own legacy. With growing businesses come growing pains and many small business owners are prone to making many mistakes - especially when it comes to taxes. If you are a small business owner, or are thinking about starting your own business, avoid the hassle of tax-time headaches by avoiding these common mistakes: 1 Not Keeping Receipts If the CRA sees any amounts on your claim that seem a bit too high or suspicious, they are entitled to perform an ...Read More

How to Deal With Tax Collection Actions

Owing money to the Canada Revenue Agency (CRA) is not like owing money to any other debt or creditor. The CRA and its Collections Department is empowered by laws to collect on your debt. This means they negotiate differently than other creditors - they have the means to be more aggressive when working out a payment plan. Each year after you file your taxes, the CRA sends a Notice of Assessment detailing the information of your return. If you owe money on that return, you have 30 days from the time of the assessment to pay the amount owing. The ...Read More

Are Vehicle Expenses Tax Deductible?

If you use your vehicle for any reason related to employment and work, you may be missing out on vehicle expense deductions you can claim when you file your taxes. While it may not be possible to claim the entirety of your vehicle, there are certain factors you can consider to see if your vehicle expenses are eligible for tax deductions. Are my vehicle expenses tax deductible? Some vehicle expenses are tax deductible in Canada as long as you meet certain requirements. Either you must use your own personal vehicle for employment-related purposes or be responsible for expenses related to ...Read More

Are There Any Tax Implications for an Inheritance in Canada?

In some countries, inheritance taxes are imposed upon an amount inherited by a person from someone who has died. That person is responsible for paying tax on whatever they receive. Fortunately for us in Canada, inheritance taxes do not exist when it comes to receiving an inheritance from a loved one. Instead, the estate of the deceased pays the taxes before any money or value is transferred to the beneficiary. This means that, in the end, the beneficiary should not have to worry about taxes. While this may reduce the initial value of the estate, it certainly provides peace of ...Read More

Is it Ever TOO Late to File Taxes?

Whether you owe money to the government, or are expected a refund on your taxes, it can be too late to file your taxes. The deadline for filing taxes in Canada is April 30th. If that date falls on the weekend it is then moved to the next business day. While you can file your taxes any time throughout the year, there are certain consequences for filing late. These consequences depend entirely on whether or not you owe taxes to the CRA (Canada Revenue Agency) or if the CRA owes you a refund. Either way, filing late can cause serious ...Read More

Is There a Penalty for Filing Taxes Late if You Owe Nothing?

In Canada, there are no fees or penalties if you file your taxes late - as long as you don’t owe anything. The main consequence of filing late when you owe nothing is a delay in receiving any returns you are owed. The CRA (Canada Revenue Agency) simply holds your refund until you do file. Filing late may also cause delays with spouses and common-law partners in which the calculation of a tax refund depends on information from your return. Also, if you receive benefit payments, such as the Canada Child Tax Benefit or the Working Income Tax Benefit, your ...Read More

What’s Best For Business Owners: Salary or Dividends?

If you have chosen to set up your small business as a Canadian corporation, you have a couple of options when it comes time to pay yourself and any other company shareholders. You can choose to pay yourself a salary, receive dividends, or a opt for a combination of both. There’s no simple answer, so join Liu & Associates as we discuss the pros and cons of each option. Business Salary If you’re paying yourself a salary, the payments become an expense of the business. You’ll receive a personal income, and get a T4 at the end of the tax ...Read More

How To Work With The CRA To File Tax Returns From Previous Years

Whatever the reason may be, sometimes people fail to file their tax returns on time, or in some extreme circumstances, ever! Failure to submit your tax return can have some nasty consequences, including hefty fines and penalties. If you find yourself in this situation know that not all hope is lost; the good news is that there is a way to file tax returns from previous years in Canada. However, how you handle the situation will depend on your circumstances. Read on to learn about what options you have if you need to file tax returns from previous years. Scenario ...Read More