This is a multi-part message in MIME format. ---------------------- multipart/alternative attachment My question is: Canadian-specific QUESTION: Hi. My wife and I purchased a townhouse in a B.C. resort with another couple from Edmonton for the purpose of nightly rental income. What are the advantages and disadvantages of forming a corporation versus a partnership? Thank you --------------------------------------------------------------- If you wish to spend the rental profits, a condominium in a corporation will cost you MORE income tax. A corporation will absolutely cost you more in legal and accounting expenses. If the cono loses money in its day to day operations and you have to kick in extra money to fund it, you will NOT get to deduct it against other income if it is in a corporation but can deduct it if in partnership. If a corporation, you can not use the rents to make your own mortgage interest deductible (see November 2001 newsletter at www.centa.com). The "only" advantage to a corporation is "some" limited liability which is best covered by a good insurance policy. David Ingram of the CEN-TA REALTY Group US / Canada / Mexico tax and working Visa Specialists US / Canada Real Estate Specialists 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 (604) 980-0321 - Fax 913-9123 [email protected] www.centa.com www.david-ingram.com Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" ---------------------- multipart/alternative attachment An HTML attachment was scrubbed... URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/9fbd4ba7/attachment.htm ---------------------- multipart/alternative attachment--
