Quote:
Originally Posted by donk.
Personally under 5 properties, once you hit 5, then you want an LLC
There aint no capital gains, unless you sell. As for rental income tax, its pennies since most of it is written off due to expenses.
Or if your mortgage is really small, then it might be worth the LLC. At that point you might as well HELOC and put that "sitting" money to use
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I'm mostly in CRE and US based, so, it might be a bit different to pure residential here in Canada.
However, it's almost never a good idea down south to put several properties under the same entity/person. Even for smaller investors, you want to put your properties in some tax pass-through entity. So, for every project (property), we'd register a new entity.
The reason is mostly legal... so if you/entity get sued, the exposure is limited to that entity alone. Thus, the most you can potentially lose is that single property minus its liabilities.
Yes, when it comes to tax filling, it's a bit of PITA, but see it as CoDB and/or insurance policy.