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
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
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
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
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
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
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
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
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
The Canada Emergency Wage Subsidy (CEWS) was introduced by the Canadian government in March of 2020 to help employers who were adversely impacted by COVID-19. This subsidy covers up to 75% of a business’s employees’ eligible earnings and encourages employers to retain their workers despite a drop in revenue due to closures. However, the CRA will audit employers who received the CEWS subsidy to ensure that they did not receive more money than they were eligible for. The process can be arduous and require a copious amount of documentation. Although claiming the CEWS does not guarantee that your business will ...Read More
