Owning a rental personally vs in a corp

Feb 24 • Strategy

Hey guys, just thought I would share more detail on what I brought up today on the group call re: rental owned personally vs in a corp. It is also province dependent heavily. There is no real cost or fee to move it in Alberta or New Brunsick for example (aside from tax/legal fees) vs in Ontario or BC you have to pay land transfer tax.

This article is a good summary: https://gytd.cpa/understanding-taxation-of-rental-income-by-a-ccpc/

Again the big advantage is for liability, and you dont have to pull the funds out of OpCo.

EG if you pull 400K out of OpCo to own it personally you pay 55% tax on that 400K

as where you could pay 0 if you had it in a corp if it came from OpCo

Also you can depreciate the property in a corp and when you sell it the "recapture" doesnt hurt as bad. Which is better for long term tax deferral. As where if you have recapture if you depreciated personally, you get screwed haha

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