tax tip: DO NOT buy in a corporation
- 02/04/11 09:01 AM
A TAX TIP: When buying ‘rental properties' as an investor DO NOT buy in a corporation, that is set-up solely for the purpose of buying and selling properties as an investment. The ‘net rent' (is passive income) and capital gains are taxed at a punitive rate of 46%. Then, there is 15% on dividends in the Personal Return. Also, it is preferable for spouses to buy the property jointly and file rental statements as co-owners to income-split the net rent and capital gain on sale; thus saving the amount of tax payable. … (0 comments)
A TAX TIP: When buying ‘rental properties' as an investor DO NOT buy in a corporation, that is set-up solely for the purpose of buying and selling properties as an investment. The ‘net rent' (is passive income) and capital gains are taxed at a punitive rate of 46%. Then, there is 15% on dividends in the Personal Return.
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