Your investment strategies matter when it comes down to determining whether you should set up a corporation or not. If you do long-term buy and holds, tax advantage from owning them in corporation vs. personal is not as significant as other strategies.
If you do flips, assignment deals and rent to own, chances are, the profit you make is considered income. 100% taxable.
When you own these investments in your personal name, you can get taxed as high as 54% in Ontario. If you own them in a corporation, it can be as little as 12.5% tax.
It really goes back to your investment strategies.
If you’re interested in learning more about real estate investing, or any other investing to build long-term wealth, be sure to come to our Nov 9 Wealth Hacker Conference. Get your tickets today at WealthHacker.ca.
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Until next time, stay awesome!
Cherry Chan, Your Real Estate Accountant
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