Real Estate

rental properties under personal tax or corporation?

  • Last Updated:
  • Oct 23rd, 2019 3:06 pm
[OP]
Jr. Member
Jan 22, 2015
155 posts
22 upvotes
Toronto

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
Deal Addict
Jul 29, 2006
4148 posts
983 upvotes
best to talk to a real estate accountant.
Member
Oct 26, 2007
326 posts
196 upvotes
A lawyer needs to transfer ownership of properties, an accountant can't do that.
[OP]
Jr. Member
Jan 22, 2015
155 posts
22 upvotes
Toronto
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?
Deal Addict
Jul 29, 2006
4148 posts
983 upvotes
to transfer from your personal to corp, would trigger a capital gains tax (personal) and land transfer taxes (corp).
Member
User avatar
Aug 11, 2019
200 posts
216 upvotes
Toronto
Depends on your tax bracket...
Full Time Realtor
GTA & Surrounding Areas
Member
May 12, 2003
371 posts
245 upvotes
GTA
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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