Ontario Tax Sale Property Forum

Tax Sale Forum => Questions and Answers => Topic started by: cityhunter on October 26, 2010, 03:46:22 PM

Title: Benefits of using a corporation to buy properties
Post by: cityhunter on October 26, 2010, 03:46:22 PM

Hi all,

I am considering opening up an incorporation to register my future purchases to.

I understand the liability aspect, eventhough as a private owner ( registered to my name ) I can still get liabiltiy insurance for a decent price.

Are there tax benefits during the time of sale? What other benefits opposed to just registering the deed to my name.

Thanks

Title: Re: Benefits of using a corporation to buy properties
Post by: Pfm1011 on October 27, 2010, 01:27:49 AM

Talk to a accountant, For one simple purchase there is no tax advantage being a corporation, But if you do a few the benefits quickly add up.

You do not have spent the money to register the corporation until you win a bid.    You can bid under your own name and if you win, get a numbered corp and have the land  registered under the numbered corporation
 
If you win land and register it under your own name, and something is toxic  or some form of liability occurs, you can be wiped out completely. And don't bet on a insurance company to protect you if they can find a way to weasel out..they will hang you out to dry. If you end up in a lawsuit the lawyer will rape you  and  leave you penniless. The case will only end when all the plantiffs and defendants bank accounts are exhausted.   

Corporate protection is always the best. 

Title: Re: Benefits of using a corporation to buy properties
Post by: speedfreeksteve on November 01, 2010, 06:11:45 AM

Good advice PFM.

I do mine through a corporation but I already had one setup for my regular business activities. The best thing about owning a corporation is that the more diverse you go with different business ventures (some profitable and some less so) the more you can easily writeoff.