Should You Incorporate Your Rental Property
For anyone looking to build wealth, achieve financial independence and/or retire early , it is important to build sources of passive income i.e. streams of income that are generated month to month without having to actively work for them. One of the most popular methods of building passive income is to purchase a property that generates rental income. If done correctly and with some luck, the return on investments (ROI) , which is composed of both rental income and appreciation in the value of the property, can significantly improve your net worth.
An important decisions when purchasing a rental property is whether you should own the property in your own name or purchase it through a corporation. The right decision depends on a variety of factors.
Consider These Financial and Tax Implications When Buying a Home
The Canadian real estate market has performed well in recent years, though analysts and economists have long warned of its potential overvaluation.
Potential homeowners often find themselves seduced by their vision of the perfect home in the perfect neighbourhood and often end up in a difficult situation, referred to as “house poor”, where the majority of their disposable income goes to paying down their mortgages.
This can be avoided by ensuring that you realistically assess what you can afford and being financially responsible.
Make Your Taxes Easier with this Detailed Checklist
The deadline to file tax returns is quickly approaching, resulting in various degrees anxiety for some taxpayers and accountants. The good news is that the stress can be managed fairly easily with some simple organization techniques. The most effective starting point is to evaluate your tax situation and prepare a checklist of the documentation that you will need with respect to your specific tax situation. A checklist can help to ensure that important items are not overlooked in the rush to put everything together (and, of course, its always satisfying to cross something off the list).
Tax Return Checklist for Individuals and Unincorporated Business Owners
The deadline to file tax returns is starting to loom large, resulting in anxiety for some individuals and small business owners. The good news is that the stress can be managed fairly easily with some simple organization techniques. The best starting point is to evaluate your tax situation and prepare a checklist of all the documentation that you will need with respect to your specific tax situation. A checklist can help reduce (or eliminate) important items that might get forgotten in the rush to put everything together (and its always satisfying to cross something off the list). I have compiled a list of some of the more common income, deductions and credits that the majority of taxpayers are likely to have:
Business and Tax Implications of Owning Rental Property
A great many fortunes have been made in real estate. Conversely, as was evidenced in 2008 with the deflation of the housing bubble, many fortunes have also been spectacularly lost. Fortunes aside, owning real estate is one of the best ways to build equity. If you own your home, you are already one step ahead. With rental property, you can further augment your net worth if after investing the necessary down payment the rental income covers and/or exceeds the mortgage payment and related expenses, (Leaving you free to move on to buying your next property). This is not a decision to take lightly as with any investment there are several business and tax factors to consider before taking the plunge: