How to best set up a portfolio to minimize taxes

I am planning to buy several residential rental properties in Canada over the next few years.

1)What is the best method of arranging my portfolio to mimimize taxes? Do I incorporate from the beginning and keep my properties within a holding company?

2)What are my obligations to government (municipal, provincial, federal)?

Comments for How to best set up a portfolio to minimize taxes

Click here to add your own comments

Dec 01, 2011
RE: How to best set up a portfolio to minimize taxes
by: Tom Karadza

We incorporated too early and it just ended up costing us money in tax returns that we didn't need to be doing.

Our rule of thumb now is to NOT incorporate until the cash flow from your properties is enough to pay for the operational overhead (lawyers, accountants) of incorporating - and to just have really good insurance on your properties. But we're not lawyers or accountants so we'd advise you to speak with them.

Your obligations are many! Property taxes and taxes on rental income are the big ones when investing. There's no escaping taxes!


Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Submit A Question.


  Some Cool Free Stuff...

  Step 1:

Grab a free digital copy of our real estate investing book, Income  For Life For Canadians, right here. This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

You'll also receive our weekly [Your Life. Your Terms.] email newsletter with the latest investing updates and videos.

  Step 2:

Free Weekly Investing Videos & Articles: Get the latest updates and join the over 10,000 other Canadians enjoying the weekly [Your Life. Your Terms.] email newsletter. The email is sent out each Thursday. And as a little bonus we'll give a FREE digital copy of the book, Income For Life For Canadians, too!

Your Life. Your Terms.

  Step 3:

Free LIVE Investing Class: Do you live in the Greater Toronto or Golden Horseshoe Area? Come out to our next introductory "Investing in Nice Homes in Nice Areas" Real Estate Class.

Get all the details by clicking here.

It's 90-minutes and you'll learn a ton - promise!Thousands of investors have now joined us for this class and the feedback has always been amazing.

Click here to get book

This book has been downloaded over 22,597 times and has helped hundreds of investors kick-start their investing with simple and straight forward strategies that you can implement right here in Canada.

  Click here to subscribe