Friday, 14 December 2012

TRANSFER OF REAL ESTATE TO A PROFESSIONAL CORPORATION

Professionals such as doctors, mortgage brokers and educational businesses are exempt from HST. That is not a good thing because they cannot claim the HST they pay on goods and services they purchase.  This becomes significant if the professional owns its place of business and wishes to transfer it to its corporation, so that he can extract funds out of the corporation tax free.  There is also the land transfer tax issue that may be avoided if the transfer is planned properly.  Despite the HST payable  it may still be advantageous for the professional to make the transfer.  There is also the possibility to recover the HST paid when the propelrty is sold.  This is a point that could easily be missed. 

Get more tax information and Q&A letters from our website www.tavana.ca

This blog is for general information only and cannot replace professional advice.
The reader is invited to contact the writer to discuss the contents of the newsletter.
Readers are advised to seek professional advice before acting on the material
in this newsletter

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