5 Factors To Determine If You Should Own Investment Properties In A Corporation In 2022

5 Factors To Determine If You Should Own Investment Properties In A Corporation In 2022

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Should you set up a corporation to invest in real estate or own investment properties? This is the number one question I get from fellow real estate investors.

I’ve heard many myths about setting up corporations to invest in real estate; the most common is if you own 3-5 properties, then you must set up a corporation.

The truth is, there’s no one size fits all situation; however, you only get the benefits of setting up a corporation IF you own these properties inside a corporation.

And that’s why in today’s video, I’ll be sharing in detail the five decision criteria to help you understand whether you should set up a corporation or not.

Here’s what we cover in this video:
00:00- Intro
0:45 - 5 criteria to decide whether you should incorporate
1:27 - Criteria #1: What is your investment strategy?
1:34 - Income Vs. Capital gain
3:15 - Active business income and tax implications
4:05 - Criteria #2: Do you want legal protection?
446 - How a corporation protects you from legal liability and limits your risks using a personal example
6:17 - Criteria #3: How many properties are you planning to buy?
6:53 - Costs involved in setting up a corporation
7:51 - Leveraging multiple corporation structures
9:39 - Criteria #4: Do you own a small business in a corporation?
9:42 - Small business corporation tax rate and calculation
12:27 - Criteria #5: Are you planning to leave your real estate portfolio to the next generation?
12:57 - Estate Freeze with corporations
13:45 - Land transfer tax
15:26 - Your next steps

Please make sure to speak to a professional accountant that knows your personal situation before making a decision.

If you need to talk to one of the accountants on my team, send us an email at [email protected]

Also, don’t forget to grab your Wealth Hacker Conference Tickets here:

If you have any questions or thoughts after watching this video, leave a comment below, and I’ll respond as soon as possible.

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Real estate Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your legal and tax advisors to ensure you get the best personalized advice.
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By: RealEstateTaxTips
Title: 5 Factors To Determine If You Should Own Investment Properties In A Corporation In 2022
Sourced From: www.youtube.com/watch?v=0MaFoIM22Fg