Using RRSP for JV and being on title-

[Candi]

Hi everyone,

If I want to invest in a JV using the RRSP. Can that be done without Taxation?- I know I can use it for 2nd mortgages- However, I am not so keen on that part. I`ve been told that - RRSP Can also be used without Taxation and be JV partner- On Title- If it`s doable- How is it done? and what are the pros & cons? Any one please advise- Thankyou.

Candi.

 

[Thomas Beyer]

QUOTE (Candi @ May 8 2009, 10:30 AM) Hi everyone,

If I want to invest in a JV using the RRSP. Can that be done without Taxation?- I know I can use it for 2nd mortgages- However, I am not so keen on that part. I`ve been told that - RRSP Can also be used without Taxation and be JV partner- On Title- If it`s doable- How is it done? and what are the pros & cons? Any one please advise- Thankyou.

Candi.
You have only a few options. You have to have an RRSP eligible legal instrument in your RRSP !!

This is either
a) a mortgage (usually a 2nd or 3rd perhaps) .. or a syndicated mortgage
b) a bond by a public company (this is the structure we use .. as do many real estate syndicator`s .. see here: http://www.prestprop.com/rrsp.html)
c) private shares .. which have to be approved by RRSP trustee .. and are usually not
d) you can borrow money secured by an RRSP eligible bond, essentially a LOC secured by your personal networth and your RRSP, and then invest that cash .. some firms can set that up