rental properties under personal tax or corporation?

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Oct 23rd, 2019 3:06 pm

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Oct 22nd, 2019 10:20 am

hammadarif [OP]: Jr. Member; Jan 22, 2015; 155 posts; 22 upvotes; Toronto

Oct 22nd, 2019 10:20 am

rental properties under personal tax or corporation?

Folks,
I have 4 rental properties of which 1 is under corporation and 3 under my personal name. What i need help with is

1) For taxation purpose would it be better to keep all 4 rental under incorporated corporation or leave it as is ? , Any risk involved for having more properties in corporation vs personal?
2) If the answer is YES to 1) , how to i change rentals from personal to corporation? Is this just a matter of going to accountant and making a change or ?

Appreciate all your help.

6 replies

Oct 22nd, 2019 10:56 am

nx6288: Deal Addict; Jul 29, 2006; 4148 posts; 983 upvotes

Oct 22nd, 2019 10:56 am

best to talk to a real estate accountant.

Oct 22nd, 2019 11:28 am

negotiater: Member; Oct 26, 2007; 326 posts; 196 upvotes

Oct 22nd, 2019 11:28 am

A lawyer needs to transfer ownership of properties, an accountant can't do that.

Oct 22nd, 2019 11:36 am

hammadarif [OP]: Jr. Member; Jan 22, 2015; 155 posts; 22 upvotes; Toronto

Oct 22nd, 2019 11:36 am

Does this means until the ownership's are not changed to corporation, i can't put them under corporation i guess?

Secondly, my question was which way is better in terms of paying less taxes... under personal or corporation? which way is better?

Oct 22nd, 2019 11:42 am

nx6288: Deal Addict; Jul 29, 2006; 4148 posts; 983 upvotes

Oct 22nd, 2019 11:42 am

to transfer from your personal to corp, would trigger a capital gains tax (personal) and land transfer taxes (corp).

Oct 22nd, 2019 12:17 pm

Dayravi: Member; Aug 11, 2019; 200 posts; 216 upvotes; Toronto

Oct 22nd, 2019 12:17 pm

Depends on your tax bracket...

Full Time Realtor
GTA & Surrounding Areas

Oct 23rd, 2019 3:06 pm

ssj4_ootaku1: Member; May 12, 2003; 371 posts; 245 upvotes; GTA

Oct 23rd, 2019 3:06 pm

Unless you have 5 full time employees, this income inside the corporation will be considered passive income and taxed at the highest rate (until you take the income out)

Best to keep these in your personal name.

hammadarif wrote: ↑ Folks,
I have 4 rental properties of which 1 is under corporation and 3 under my personal name. What i need help with is

1) For taxation purpose would it be better to keep all 4 rental under incorporated corporation or leave it as is ? , Any risk involved for having more properties in corporation vs personal?
2) If the answer is YES to 1) , how to i change rentals from personal to corporation? Is this just a matter of going to accountant and making a change or ?

Appreciate all your help.

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