Canadian wants to transfer rental house into an RSP- Making Your Canadian Mortgage deductible.

My question is: Canadian-specific


Really enjoy reading your comments. My question is: - I own a rental house (Fraser Valley) that has gone up by 200% in value in the last few years - is there any option to transfer the asset into an RRSP? - If there is would you suggest it? If down the road - I choose to sell, is there any way to keep the amount paid in capital gain taxes to the very minimum?

The other option I am looking at is getting another rental property or two - at what point would you go from a sole propriatorship to a formal company? Thank You


david ingram replies.

I am willing to bet that you do NOT have a deductible mortgage on your own house. With the description in your email address and a rental property, you CAN make your Canadian Mortgage interest deductible. Log on to and read the November 2001 newsletter (clickl on <newsletters>, click on <2001>, click on <November> - the first page deals with which Canadians have to file US tax returns and then there are 11 pages of information on making a Canadian mortgage deductible.

You can NOT transfer the rental house into an RRSP.

I am against most individuals owning rental property in the name of a company unless you are trying to create an estate vehicle with your spouse and children as shareholders of the incorporated company. That situation is too personal for this forum. Reading the November 2001 newsletter mentioned above will show you why I do not like rental property in a corporation.

Protect yourself with "good" insurance policies.

With director's liability and "breaking the corporate veil" a corporation does little to protect your assets in the short or long run, increases your income tax if a holding company and is far more expensive to manage.

You should likely spend some money and come and see us for a consultation. If you do, bring your significant other.


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