In the not-too-distant future, Ontario real estate professionals will have the opportunity to incorporate, thanks to the passing of Bill 145 this past March. While the legislation (and details) around Personal Real Estate Corporations (PRECs) have yet to be released, there are a few things real estate professionals can do today to prepare. First—and likely most important—is to understand the tax benefits of incorporation.
Of course, once you withdraw funds from a PREC, that money is subject to your personal tax rate. Fortunately, with a bit of planning, it is possible to minimize the amount of taxes you owe when doing so. Find out how to do this in our article.