The Advantages of Holding Real Estate in a Corporation in Ontario
The Tabuchi Law Team
February 10, 2023
Personal Asset Protection
Welcome to the world of real estate investment, where your decisions can significantly impact your financial future. One critical decision is the choice of holding structure for your properties. In Ontario, savvy investors often opt for a corporation, and with good reason. Let's dive into the sea of benefits that this approach offers.
Lower Tax Rates
Imagine a world where you can enjoy your investment income without the burden of high tax rates. Well, that's precisely what you can get in corporations! Corporations in Ontario often have lower tax rates than personal tax rates, especially when the income level is high. It's like having your cake and eating it too!
What if you could simultaneously share your investment income with your family and reduce your tax liability? That's precisely what income splitting in a corporation allows you to do. By distributing the corporation's income to family members in lower tax brackets, you can keep more of your hard-earned money.
Imagine a shield protecting your assets from potential claims or lawsuits. Well, that's precisely what limited liability in a corporation offers. In the event of a claim against the property, the corporation, not you, is generally held liable. It's like having a personal bodyguard for your assets!
Continuity of Ownership
Continuity of Ownership Death and taxes are said to be the only certainties in life. But with a corporation, even death doesn't disrupt ownership. Unlike individual ownership, a corporation doesn't cease to exist when the owner dies, making estate planning and succession a breeze. Additional Advantages Easier Financing In the eyes of lenders, corporations often appear as stable and reliable borrowers, making it easier to secure financing for your real estate investments. It's like having a VIP pass to the world of real estate financing! Professional Image A corporation isn't just a legal entity; it's a statement. It signals to others that you're serious about your investments, enhancing your professional image, and potentially opening up more opportunities.
In conclusion, the advantages of holding real estate in a corporation in Ontario are clear. However, it's essential to remember that each investor's situation is unique. Seeking professional advice is crucial to ensure this approach aligns with your investment strategy. At Tabuchi Law, we are committed to providing guidance every step of the way. If you are ready to explore the benefits of holding real estate in a corporation, please contact us for a consultation.
Here are some other articles on this topic:
Here are some more related articles:
Explore these informative articles on this category!
New and worthly
3 min read
Common Mistakes to Avoid When Creating a Will in Ontario
Avoid mistakes and costly errors when creating a will in Ontario. Discover how Tabuchi Law experts can protect your assets and update beneficiary designations.
Understanding Trusts: A Comprehensive Guide to Estate Planning
Learn everything you need to know about trusts, including revocable and irrevocable trusts, living trusts, asset protection trusts, testamentary trusts for a disabled beneficiaries, and charitable trusts. Get advice from an experienced attorney in Ontario to ensure your estate plan meets your needs.