- Joined
- Aug 26, 2010
- Messages
- 380
A partner and I are just finishing a mixed apt and townhome development (18 units total) that once refinanced will have a 264 K tax loss on the corporation's books from the development phase. The development is expected to net about 2-2.5K per month net, lets say 25K per year.
Using the tax loss to write down income means we will have about 10 years of non-taxed income. However it seems to me there must be smarter strategies to maximise use of this tax loss. Ideas that come to mind:
- buying a company that owns real estate that has been depreciated to where a sale means a big tax hit
- possibility to turning this company into the general partner in a limited partnership to transfer tax loss to limited partners and become a vehicle to start focusing on raising capital
- focus on buying highly cashflow profitable real estate to soak up the tax loss faster, for example buying 5-10 SFH's and putting them all as rent to own (which I have experience with) as rent to own income including the final sale capital gain is classified as active income for taxes.
Any thoughts on this by anyone? Are these viable strategies? We are meeting our accountant soon and I'd like to have some options to discuss with him.
Thanks!!
Using the tax loss to write down income means we will have about 10 years of non-taxed income. However it seems to me there must be smarter strategies to maximise use of this tax loss. Ideas that come to mind:
- buying a company that owns real estate that has been depreciated to where a sale means a big tax hit
- possibility to turning this company into the general partner in a limited partnership to transfer tax loss to limited partners and become a vehicle to start focusing on raising capital
- focus on buying highly cashflow profitable real estate to soak up the tax loss faster, for example buying 5-10 SFH's and putting them all as rent to own (which I have experience with) as rent to own income including the final sale capital gain is classified as active income for taxes.
Any thoughts on this by anyone? Are these viable strategies? We are meeting our accountant soon and I'd like to have some options to discuss with him.
Thanks!!