How to Report the Sale of a U.S. Rental Property Watch Video
Allan Madan, CPA, CA
Are you planning to sell a rental property in the U.S.? Read More…
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
Hi Mr. Madan, we ( my husband and I) own a corporation which is a rental property. We used this ass our residence from 1996 to 2009 and just renting the basement. In 2009 we bought our house which is our principal residence. And use corporation upstairs for our use. We would like to transfer this house to our son’s name. Could you please advice me how should we do it. And also would like to make an appointment to discuss this. Thank you.
Hi Manjit, The big issue that you have created for yourself is a taxable benefit. When you use a corporately owned asset for personal use (even partially), then you must pay personal income tax on the value of the benefit derived from your personal use. You should immediately stop using the property for personal use. In addition, consider an estate freeze in order to make your son a shareholder of the corporation and to pass on the future growth of the company’s assets to your son.