Real Estate Investing and Tax Laws for Alberta,Canada

[Tyson Knelsen]

Hey all, I am new to the real estate investing world and will be starting up an investing company with two additional partners in the new year. Our goal is to focus on Air BnB’s in the Alberta area. I’m just looking for some resources on valuable courses/seminars I can take to learn relevant information about real estate investing in Alberta in general as well as the way taxes work and keeping as much of my money as possible with operating a real estate investing company. Thanks!

[Stevo Sun]

Quote from @Tyson Knelsen:

Hey all, I am new to the real estate investing world and will be starting up an investing company with two additional partners in the new year. Our goal is to focus on Air BnB’s in the Alberta area. I’m just looking for some resources on valuable courses/seminars I can take to learn relevant information about real estate investing in Alberta in general as well as the way taxes work and keeping as much of my money as possible with operating a real estate investing company. Thanks!

 I think if you are running an active business you would be taxed as a business. When you take money out of the business through dividends or salary you'll get taxed for income. The way most people shelter income is leaving the money in the business and re investing it. There are specific exclusions for rental income. You are not considered to be an active business if you just have rental properties. 

CRA Info Below

Find out if you have rental income or business income
To determine whether your rental income is from property or business, consider the number and types of services you provide for your tenants.

In most cases, you are earning an income from your property if you rent space and provide basic services only. Basic services include heat, light, parking and laundry facilities. If you provide additional services to tenants, such as cleaning, security and meals, you may be carrying on a business. The more services you provide, the greater the chance that your rental operation is a business.

https://www.canada.ca/en/reven...