The Canadian Real Estate Investor Real Estate Investing Tax Tips You Need To Know
17 snips
Jan 20, 2023 AI Snips
Chapters
Transcript
Episode notes
Active vs Passive Income Explained
- Real estate income in corporations is classified as active or passive based on effort involved.
- Rental income is usually passive unless employing more than five full-time employees or related active business services.
Meet Corporate Tax Deadlines
- Pay corporate income tax owed within three months after year-end for CCPCs to avoid penalties.
- File corporate tax returns within six months but do not confuse filing deadlines with payment deadlines.
GST/HST Rules for Investors
- Register for GST/HST if your taxable sales exceed $30,000 in four quarters and you make taxable supplies.
- Charge GST/HST on short-term rentals under 30 days but not on long-term residential rentals.