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]
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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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DISCLAIMER:
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. The information contained in this video is for general information purposes only. The information is provided by ECRB Consulting Inc., RealEstateTaxTips.ca, Cherry Chan Professional Corporation and Cherry Chan. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the article or the information, products, services, or related graphics contained on the presentation for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage, including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of or connected with the use of this information.
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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
