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Anonymous

I am interested in incorporating in the near future. My only question is how would incorporating affect capital gains made from selling real estate? You mentioned that gains under a corporation are taxed up to 60% – so isn’t it better to not incorporate, and pay only 50% of individual tax?

Also, if my rental income is less than $50,000 per annum, it would be beneficial for me to incorporate, since that will be taxed at a lower rate (my personal marginal tax rate)?

I’ll be sharing your responses with my partner who will also be a director and owner of the corporation.