Purchasing In Your Corporation Name

This one's for the business owners. When you're buying a home, did you know that you can purchase a property in either your personal name or in your corporation name.

Today we're going to talk about some reasons why you would or wouldn't want to do that. When purchasing in your corporation name, there are a few downfalls. There are less lenders that will finance these types of mortgages, so it can limit the lender pool and rate options that you have. However, there are a lot of great benefits to it as well.

It allows you to shelter the tax implications of withdrawing from your corporation for the down payment, as well as a shelter the income that you earn off of your investment property. And we do still have a lot of great lenders who will finance these properties so well. The little options are more limited. There's still great options when buying a property in your personal name.

You have a wide variety of lenders that you can work with. However, as a business owner, if all of your money is in your corporation, it may require that you withdraw that money for the down payment. Creating more tax implications for you. Also, any income that you earn for that property is something you have to declare on your personal tax returns, which can put you in a higher tax bracket.

There are strategies for how to avoid this. And so always give our team a call and we can walk you through them.