Real Estate Tax Planning Canada - Accountant Mississauga

What should you know about tax when it comes to investing in real estate?

As an Accountant in Mississauga and avid real estate investor, I have disclosed the tax secrets to real estate investing, below. By using these tax secrets, youll certainly save a ton in tax.


1. Should You Incorporate Real Estate Investments - Real Estate Tax Planning Canada - Accountant Mississauga

"The first thing that you need to know about real estate tax planning in Canada is whether or not you should incorporate," says Allan Madan, Accountant Mississauga.

The advantage of holding your real estate investments inside a corporation is that a corporation offers a Limited Liability Protection. That means that in the event of a lawsuit, your personal assets such as your home, your automobile and other personal belongings would not be at risk in the law suit.

It can happen, ... [more]

The requirements to be able to deduct a real estate tax are:


the taxpayer must own the real estate, and
the deductible taxes must be based on the assessed value of the property

In our example property the State/County Tax and City Tax clearly meet the requirements of being calculated based on the assessed value of the property.  However, the Special Tax charges are not taxes based on the assessed value of the property.  If there were a Refuse charge included that would not be calculated on the property's value either.
If this were your property and you or your tax professional look at the 1098 provided by the mortgage company at the end of the year the $6,114 would likely be reported as the deductible property taxes.  This would be incorrect as the $531 Special Tax is included and we just determined that is not deductible.

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Real Estate Tax Deductions

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As an owner can, you need to save for ways to make money and earn income during the course of the loan to be found. As a homeowner, there are many ways to save money are entitled to tax deductions for the cost of ownership of a property. You also want the ability to get money.
http://www.lenderstree.pannipa.com/2009/11/18/real-estate-tax-deductions-2/
You can find books on how to reduce your property taxes and what deductions can you claim at the end of the year when you do your taxes. Take the advantage of homeowners by going to save some of the researchMoney.
If you are a homeowner, you have to pay property tax to the state government. These include school taxes for your area as well.
If you property in a rural area, then you will probably be required to pay homeowner taxes once a year.

Related Coverage

Real Estate Tax Deductions

As an owner can, you need to save for w... [more]