Hi,please advise if it is still better to invest in real estate under corporation as you had advised before or is there any changes based on the new tax rules that this no longer applicable?
If you have the funds available to you personally to make a down payment on a rental property, then I recommend that you purchase the rental property in your name. You will not save tax by purchasing Canadian real estate through a Canadian corporation. This is because Canadian corporations pay a high rate of tax (approximately 50%) on net rental profits. If you are flipping real estate, then it can make sense to buy a property though a corporation, because corporate tax rates in Canada on business income (from flips) is very low – about 12.5%.