Accountants are our saviours in helping us keep more money in our pockets by helping us make smart decisions with our revenue properties around tax time. Daniel Hershcovis from 1917 Accountants joins us to chat taxes. If you’re interested in investing, you must also learn to get excited about accounting!
Accountants are our saviours in helping us keep more money in our pockets by helping us make smart decisions with our revenue properties around tax time. Daniel Hershcovis from 1917 Accountants joins us to chat taxes. If you’re interested in investing, you must also learn to get excited about accounting!
Plan from the beginning on how you want to set up your company tax wise. Properties can be held either personally or corporately. Inherently, filing as a corporation doesn’t save you tax, that’s not the purpose of a corporation. It helps limit liability instead of avoiding tax. Passive income in corporations is taxed much differently as well.
“Be organized about it so you can stay out of trouble and maximize your return. If you can’t be organized on your own, it’s worth it to hire someone to help you out. They are a tax deduction too!”
Solid bookkeeping is critical for your investment journey. If you do nothing else, get separate banking accounts for all your properties. Daniel walks us through Deductions, Betterments, and Capital Cost Allowance (CCA) to better understand how these can help you, the savvy investor. The longer you own a property, the lower the amount of depreciation you can claim.
Always think about the end of your investment journey because the exit strategy is critical and needs to be well planned out from the very beginning. You need to consider both your investment plan and divestment plan. Starting out in real estate investment can seem intimidating, but it is so rewarding. We’re here to equip you on your real estate journey.
