An arm's length mortgage is one where the person you're giving the mortgage to is not related to you (ie, not you, your spouse, parents, kids, grandparents/kids, or a corp you own a signficant part of). They're safe in that you are typically on title so if the payments stop, you can foreclose...

Has anyone had much in the way of experience with Agreement For Sale purchases? Seems like a good way to pick up properties that either the vendor isn't sure about how to avoid the mortgage break fee, or also a creative way to pick up a cashflowing property that is just out of qualifying reach...

If the property is in your personal name, there's very little that could be used to reduce the taxes. You are correct that only 1/2 of the gain is taxable. There are a few capital gains exemptions out there, but they generally don't apply to RE investors (principal residence, farm land...

While I can't talk to the banks requirements as such (not my area) I can talk a bit on the accounting side and what the banks SHOULD be able to look at. If you're the sole shareholder, it should be easy to show the bank that your corp is making the 50K per year and by showing the dwindling...

I love how they figure they can do two completely different things at the same time. Let's control the rent, keeping it under what the market would sustain, but at the same time ask everyone to increase the number of units available. I'd love to hear their ideas on how they're going to ask...

I had a similar problem with my personal residence. I switched to EasyMax in the summer, and signed up for automatic withdrawls. No fuss, no muss, don't have to worry about anything. Around December, I got thinking and checked back in my records. I hadn't been billed, or amounts withdrawn...

I'm going to start out by saying that I'm not 100% sure on this one (since it doesn't apply to me, haven't worried about it), but pretty sure, as it does make sense when compared to other equivilent tax law: In regards to the vehicle, it depends on how many properties you have. If you only...

The short answer is yes, buuuuuut....... Since you haven't provided any details, I'm going to throw out the usual things to remember on CCA 1. Remember to split the cost of the property between the purchase of the land vs the building. Buildings depreciate. Land does not. 2. If this...

Anybody able to get this to work? I use the link, and I get a message saying 'Thanks for Glossary Suggestion'

Jeffersonn, As discussed through most of this thread, the mortgage PAYMENT is not an expense. Only the INTEREST portion of it. You can not deduct the PRINCIPAL portion of the mortgage that actually goes to pay back your debt to the bank.

There's so many variables in tax, it's almost impossible to give a simple answer on which way is better. Some of the things to consider (and I'll try to expand on the points, but again, no way can I be all inclusive) 1. Are you going to be subject to CPP premiums? If you earn the money...

I'd make sure to ask again about the tax rate. One thing to keep in mind with a rental corporation is that it does not get the benefit of a lot of tax breaks that an 'active' business corporation would get. 14% sounds about right if this was an 'active' corporation, and only the federal part...

Do you happen to know how that works out on a % basis? Most management companies seem to work on a % of the rent rather than a flat rate.

I guess the answer to your question is sort of a 'yes AND no', but I think you've got the right idea. The part of the mortgage that pays down the actual mortgage principal does not get deducted because it is not an actual expense (technically it's a reduction of a liability, since with each...

Taxes are always fun, aren't they? One thing to keep in mind that is often mistaken the tax-unaware is that cash flow does not equal profit. Just because you aren't making cash into your pocket, does not mean that you aren't making money, as each month your mortgage payment includes not only...

Thomas is correct. If there is a corporation, you do have to file a seperate tax return (T2) from your individual tax return. The due date is 6 months after your year end (a corp can choose any year end it wants). However, do keep in mind that any tax owing is due 2 months after the year end...

One quick correction to the above. An investment corporation is not eligible for the small business deduction and thus will actually pay HIGHER taxes than most scenarios for an induvidual. The only time an investment corporation will get the benefit of the small business deduction is a) if it...

Couple items that you had mentioned: 1. If you are indeed 'flipping' houses, you are buying houses for the purpose of rather immediate fix-sell, then you will indeed be taxed on the full gain as business income (as opposed to those that buy to rent, are fully taxed on the rental income, then...

It really depends on your situation and preferences. As mentioned, it's common for some to use CCA to bring rental income down to zero so no additional tax is due (keep in mind CCA can not be used to create or enhance a loss). The trick is to keep in mind that typically speaking (assuming the...