using a corporation (with capital loss) to buy real estate

[EricBodin]

Hi,

I guess I have a pretty strange question: I own a corporation (Ltd) in BC that used to own a restaurant and after selling all of my assets, I have now a pretty big loss of $150K with this company. I am planning on buying real estate investment within the next 6 months (used to be a REIN member for 4 years). Based on my company loss, would it be beneficial for me to buy real estate inside my corporation? (I will have to change my corp articles)

Thanks for any input!

Eric

 

[Thomas Beyer]

Welcome to the club of former restaurant owners with a loss. I can relate.



Yes, absolutely, you should buy real estate (or any capital item like stocks or gold) in that firm as you will be able to co-mingle losses with gains. With an expected NDP win in BC, those purchases are perhaps best directed in the next 6 months outside of BC in AB or SK !

 

[EricBodin]

Thanks for the quick response Thomas! As it is a BC corporation, would I be allowed to use it to buy real estate in AB for example?

Thx!

 

[Thomas Beyer]

of course, and due to the new interprovincial enhancements you do not even have to extra-provincially register the corporation ! [I did it the other way around]

 

[EricBodin]

Thank you so much for your answers Thomas. I was really on the fence wether or not I should keep the company or dissolve it, but I guess it makes more sense to use it for R.E investments! Now it is just a matter to change the name and the articles to go from restaurant industry to real estate!

Eric