DO NOT buy in a corporation

By
Real Estate Agent with RE/MAX Condos Plus Corporation, Brokerage

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.

Posted by

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Real Estate Agent serving clients for the Toronto Downtown and Toronto Waterfront Area.

Residential and Investment Properties.

Rosalind Nicholas, ACCA,SRS,REALTOR®

e-mail:   Rnicholas@trebnet.com     Tel: 416 918 1972

RE/MAX Condos Plus Corporation, Brokerage, Toronto, ON, Canada.

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