Buying a House in Canada.Best to do it under Name or Corporation?

[rentingintl]

Is it best to buy mutual funds under a person's 'personal' savings account or Corporation's account in Canada?...because once you remove the funds you get taxed. But is it tax-sheltered if you purchase a residential property? Thank you in advance for any advice you can provide.

 

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[C9Consulting]

Re: Buying a House in Canada.Best to do it under Name or Corporat

The way it works is this, at some point, you're going to get taxed. I live in the States so I don't know how Canada does its capital gains taxes. In the States it's advisable to do a lot of dealings under a corporate umbrella, to shield an individual from taxes right off the bat. For instance a lot of corporations are taxed on the back end. Meaning that they're taxed after gross profit is calculated.

Individuals are taxed on the front end, meaning taxes are the first things taken out of our paychecks, not the last(as with corporations). And that's why putting any kind of investments under an umbrella corporation is beneficial to anyone participating in large investment decisions.

I hope this helps.

 

[tchandy]

Re: Buying a House in Canada.Best to do it under Name or Corporat

I agree with C9 but you may want to provide more details since you're mixing apples with oranges in your comment.

Tom

 

[Jonleehacker]

Re: Buying a House in Canada.Best to do it under Name or Corporat

Once this whole global warming thing kicks in, Canada will be the new California... fortunes will be made.

 

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[hatterasguy]

Re: Buying a House in Canada.Best to do it under Name or Corporat

You need to talk to your accountant.

Questions like this are for your team, they should be on speed dial on your phone.

 

[arfa]

Re: Buying a House in Canada.Best to do it under Name or Corporat

The law and taxation in Canada is different from US. There are not many tax breaks options in Canada and landlord-tenant law is agains landloards. I could only speak based on my personal experience with residential properties. It all depends on your personal situation. If you put a property in corporation in some circumstances it provides you more protection for your personal assets, however only if you did not guaranteed it personally, but usually you won't be able to receive mortgage without personal guarantee. Taxwise it depends on what this property is for you (rental property, recreational house, your another residence, office, etc...) and what are your plans for this (flipping, transfering to your kids, rent it out, etc...). You should provide more information in order to answer the questions.

 

[rentingintl]

Re: Buying a House in Canada.Best to do it under Name or Corporat

Thanks for your responses.

If let's say I were to buy a house for personal use and buy it without the need of a mortgage under my corporation and the company goes bankrupt...would I lose my house?

If my 'corporation' buys mutual funds and when I take the money out would normally have to pay tax on it, correct?..But if my company from previous years was at a loss, I basically wouldn't have to pay any taxes on the profit I made on the mutual funds?

And if I were to take the money out of the mutual fund and directly purchase a house (for personal use) again registered under my corporation, is it considered as a re-investment and sheltered from taxes? I think I read about this in the Rich Dad series, but that applies to the U.S. Not sure if it's the same for Canada?

 

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