You might not have a proper family trust setup; you might not even know anything about trust at all…
Before you stop reading, you might want to see if any of these scenarios apply to you…
- Have you already or are you planning to invest in a property, qualify for financing in your personal name, and report all income and expenses, assets, and liabilities all in your corporation via a trust agreement?
- Are you part of a joint venture investing in properties and the legal title owner is not consistent with how you report the income & expenses?
- Are you on title with your family/friends just to help them out with financing or handling all the financial affairs for your parents?
Guess what, under most of these scenarios, you can have an Underused Housing Tax act filing obligation…AND, you will also have a filing obligation in the upcoming “NEW” trust reporting requirement…
Penalties on both filing obligations are huge…
Or… you simply have the following questions…
- Can you set up a corporation to own your properties after closing?
- What is considered a trustee?
- Can you transfer your properties to the corporation without triggering a land transfer tax?
We’re all in luck. In the following Youtube video, Milena Cardinal from Cardinal Law, a firm that specializes in working with real estate investing, is going to talk to us about all of these topics.
If you want to get in touch with Milena, you can reach out to her via her website CardinalLaw.ca
Until next time, happy Canadian Real Estate Investing.
Cherry Chan, CPA, CA
Your Real Estate Accountant
