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Financial PostNovember 2022

Should I put my seven rental properties into a corporation? Or is there a better option to save on taxes?

Featured writing by Allan Norman · M.Sc. · CFP · CIM

The Short Version

Investors who build a sizable rental portfolio often hear that incorporating is the savvy next step, and this piece examines whether that holds up for someone with several properties. The surprising takeaway is that moving rentals into a corporation may deliver little or no yearly tax saving, particularly for a landlord who already earns a high salary at a day job. It looks at why the expected advantage can fail to materialize, the costs and complications a corporation brings, and what other approaches might do more for the tax bill. The real lesson is to be clear about what problem you're actually solving, whether it's tax, liability or succession, before restructuring. It's most relevant to a higher-income employee with multiple rentals wondering whether incorporation is worth the trouble or just conventional wisdom that doesn't fit their situation.

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