This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
September 16, 2003 at 11:25:38
My question is: Canadian-specific
QUESTION: Hi David
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 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 www.centa.com and read the November 2001 newsletter (clickl onm 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 ina corporation.
Protect yourself with "good" insurance policies.
With director's liability and "breaking the corporate veil" a corporation does little to protect your assets int eh short or long run, increases your income tax if a holding company and is far morte expensive to manage.
You should likely spend some money and opme and see us for a consultation. If you do, bring your significant other.
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/d7a3dd78/attachment.htm
---------------------- multipart/alternative attachment--
What's Related