Tax benefits Canada

[Phillip Johnson]

Hi guys,

I'm fairly new to bigger pockets and haven't seen a thread on Canadian tax benefits to investment property. I'm originally from the UK with a small portfolio and am now looking to relocate to the Nova Scotia area. I have put some research into this but as we all know, experience out ways research any day of the week! 

Is there anyone out there that has dealt with tax returns on investment property in Canada? Any advice/tips would be greatly appreciated. 

Thank you in advance, Phil.

[Roy N.]

@Phillip Johnson

I'm not certain what sort of tax benefits you have in mind.   If you hold property in your own name, it's treated like any sole proprietorship - income is taxed at your marginal tax rate; business expenses can be deducted against income.  If you bought an investment property which was loosing money  - say the operating expenses were exceeding income due to high vacancy - you would be able to deduct those expenses against all your income (including that from employment).

As for a tip, find yourself an accountant. The Canadian tax system is notoriously detailed and, once you step outside the realm of a simple tax return, you run the risk of  "missing" things that could benefit you (or cost you extra).