Posts Tagged ‘corporations’

Q&A: When do I move my properties to a corporation?

Posted on: October 25th, 2015 by Real Estate Accountants No Comments
Predicting the best solution for moving personally owned properties to a corporation.

One of the number one questions we get as real estate accountants from investors, after “should I incorporate?”, is “should I move my personally held real estate to a corporation?” Our clients want to know if they should be making this decision based on number of properties, amount owing, liability risk, or something else completely. The […]

Accounting for rent-to-own real estate investments

Posted on: August 26th, 2015 by Real Estate Accountants 9 Comments
Handing you the keys

The tax rules surrounding rent-to-own (RTO) real estate investments provide an insight into the complexity of the Canadian Income Tax Act and illustrate why having the right advice, and using the proper structure, is critical. Think of this as a primer on those rules, and how they may affect your taxes as you plan your […]

Pros and Cons: Property management corporations for real estate investors

Posted on: April 21st, 2015 by Real Estate Accountants No Comments
Property Management Corporations

We often get requests to set up a property management company for our real estate investor clients, even when they only manage properties that they own. Before leaping head first into creating the company, we examine the reasons for the company, and review the pros and cons of setting up the management company. We were […]

Using corporations with real estate investments: Flips, RTOs and buy and holds

Posted on: December 8th, 2014 by Real Estate Accountants No Comments

We often get these two fundamental questions from real estate investors: Is it important to have separate corporations for rent to owns (RTOs) and flips vs long-term holds for our real estate investments? What happens if the property changes from one category to another? These questions answered, plus many other questions from the audience for […]

Should I buy my vehicle personally or in my company?

Posted on: May 23rd, 2014 by Real Estate Accountants No Comments
Vehicle, automobile, car

It’s safe to say that I get this question about three times each month from our clients: “What makes sense from a tax perspective? Buying a car personally or in my company?” In the vast majority of cases, it’s better to buy a vehicle personally, then charge the company for your business use, by the kilometre. (For […]

Q&A: Long-term holds vs rent-to-owns: inactive vs. active income?

Posted on: February 27th, 2014 by Real Estate Accountants 2 Comments

Q.  We currently own 6 revenue properties, and over the last 6 years we have sold 5 revenue properties. We have always been buy and hold. We are considering entering into a Rent-to-Own agreement and I understand it will be taxed as active business income. It would be a one year or two year term. […]

Should I register for GST/HST?

Posted on: November 14th, 2012 by Real Estate Accountants No Comments

The “should I register for GST/HST” question is a common one we get from our clients, which normally goes like this: I have received forms from CRA for GST/HST registration, I am not sure if I should register a GST/HST number for a parent corporation and a real estate holding company. There is no income […]