My question is: Canadian-specific

QUESTION: I am currently a owner of a small incorporated importing company.  In the next 6 months I am planning on investing in a couple of revenue (residential) properties.  Is there an advantage to running them through my existing corporation or should I keep them separate.

Thanks,
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david ingram replies in answer to this question left on www.jurock.com at:                                               http://www2.jurock.com/askexpert/ask.asp?aid=121&cid=63

The real question is:

Should your investment rental residential real estate even be in a corporation.

My answer is "no" in 99% or more of the cases and even if I could justify your rentals in a corporation,I would "never" allow you to include them into a an existing active corporation which is your regular business.

Read my Nov 2001 newsletter (first page deals with US tax returns) from page 2 on (goto www.centa.com, click on newsletters, read Nov 2001.

This gives you a lot of ways to make your own personal mortgage deductible and you might find that you should not be using the corporation you already have.

One man corporations do NOT protect an individual from lawsuits, they just make them more expensive.

If you want to spend your profits on things for "you" or your family, the tax is higher if you funnel the profits through a corporation than if you are a proprietorship.

The accounting and legal is much higher with a corporation.

You do not have control of your money with a corporation.

The above all refers to a one person or family corporation with no or few employees.

If two families or two people are involved, a corporation does have some merit because the corporation can protect you from silly actions of the other shareholder (who you think of as your partner).

The best way to protect yourself from lawsuits, etc., is to buy good insurance and then double the liability amounts.

And remember, "If you always tell the truth, you won;t have to remember what you said!"