They say that you should never mix business with pleasure - but when it comes to finances, the two are connected in a number of ways. Because of the connection between corporate finances and individual finances, it’s important to understand that, while you can approach both in very similar ways, it’s not always a good idea to allow the two to mix. Before we talk about how to keep your corporate and individual finances separate, let’s first look at their similarities and differences: Similarities Between Corporate Finances and Individual Finances The similarities between corporate finances and individual finances all come ...Read More
What do you do if you want to change your corporate accountant but feel stuck with your current one because they have been with you for so long? While you may be fiercely loyal to your current accountant, you should focus on putting your company’s needs first! Switching accountants is not an overly complicated process. In fact, most of the steps are taken by your new accounting firm and regulations ensure that file and information transfers are done efficiently. In this article, we’re going to outline those steps and show you how easy it is! But because we don’t recommend ...Read More
Tuition tax credits are non-refundable credits, meaning that they will work toward lowering the amount of taxes you owe but they will not be contributed to any refunds. This means that they will help keep your owing taxes low but will not increase the amount you get back on your taxes. Sometimes, however, it works out that the tuition you are claiming exceeds the amount you owe. So what happens to the rest of the tuition tax credit? Does it disappear into obscurity? It doesn’t and the good news is that you can carry forward or transfer any unused credits! ...Read More
In Canada, every person must file income tax and benefit returns each year. The due date for having your taxes filed is April 30th - but if you’re self-employed you have until June 15th. So that means if you are filing your 2021 taxes, they will be due April 30th, 2022, and June 15th, 2022, respectively. However, just because you have until the end of April to file your taxes doesn’t mean you have to wait until the last minute! The earliest date that the CRA (Canada Revenue Agency) will start accepting electronically filed tax returns is usually around February ...Read More
Do you ever find that when tax lingo starts flying around at tax time, most of it goes right over your head? Filing and paying taxes involves more than reporting your income to the government. There are a lot of nuances to consider when it comes to preparing your taxes properly as well as ensuring you are taking advantage of eligible credits and deductions. In order to manage your finances in a more tax-friendly way, it’s helpful to know what many of these terms mean. Here is a list, from A to Z, of some common tax terms explained: After-Tax ...Read More
They say that nothing is certain except for death and taxes. However, when dealing with both at the same time, figuring out what to do can create a sense of uncertainty. Finding closure is an important part of the grieving process and, when a loved one passing away, this often includes tying up loose ends and settling their estate. A part of settling a deceased individual’s estate is ensuring that their taxes are properly filed one last time. If you are responsible for filing taxes for someone who has passed away, it’s important to ensure that the process is completed ...Read More
Have you reached a point with your small business where handling your finances is becoming difficult and stressful? When you’re passionate about what you are doing, starting a business is easy. Running it, however, involves many moving parts. And if you don’t have the experience or know-how, the challenge can quickly turn to frustration and even negatively affect your small business’s performance. So what do you do? The short answer is to hire an accountant who can manage all the financial aspects of your small business. There are many benefits to hiring an accountant and there are a variety of ...Read More
Did you know that you can claim medical expenses on your income tax? In Canada, you can take advantage of the Medical Expense Tax Credit (METC). This is a non-refundable tax credit that allows you to claim eligible medical expenses for yourself, your spouse or your dependents. The process isn’t as straightforward as simply plugging in your numbers, however. First, you need to determine if your expenses are eligible and if you meet the cost threshold to claim them. It can be confusing but, here at Liu & Associates, we want to help you understand the process. Keep reading to ...Read More
Whatever your situation in life, it may be possible that you do not work and earn an income. Perhaps you lost your job or chose to stay home and care for your children. No matter your situation, you’re probably wondering whether or not you have to file your taxes at all. While federals laws do not require you to file a tax return if you have no income to claim, it’s important to determine if there are other situations that may require you to. The last thing you want is to face an audit or pay the interest and fees ...Read More
Last year was an interesting one when it came to employment norms. People accustomed to commuting to an office or workplace every day were offered the opportunity to work from home. Likewise, many people also decided to start their own businesses at home. If you fall into either of these categories, your situation drastically changes the way in which you will file your 2020 taxes. Instead of plugging in your T4’s and calling it a day, you now have to consider your home office expenses and what you can claim as deductions on your taxes. The process is fairly straightforward ...Read More
