Start a separate property management company?

[Brett Skauge]

Hi folks, I don't like how I am not compensated for my time as landlord when I am doing renovations/maintenance on my properties.  I guess maybe it just creates a convoluted mess of paper-trail, but if I created my own corp to manage, maintain and renovate my properties could I not then charge for my time? I understand that my management company would then have to pay taxes but they would be corporate, not personal. I just find that between renovations, maintenance and dealing with tenants on a few different properties takes a lot of time, but I can only really claim hard costs as tax write-offs. Creating a company to do this accomplishes that in a sense, but I am wondering if it just passing the buck on to myself only to pay tax on it later so to speak? I hold the properties in my own name, not through a company currently. 

[Roy Cleeves]

If you do not already have a company then I would recommend that you incorporate and use that company for that and so much more.  You can use it for other Real Estate items and write-offs.  If you accumulate money in that company then you can use it to buy your next vehicle and thereby saving the taxes that you would have paid personally.  There are more bookkeeping and accounting costs yet it seems to be worth it as long as you use it to make purchases, etc.  And I also think there is some Capital Gains allowance for each corporation as well so you might even use it to buy Real Estate in the future.   I am only providing an opinion here, you are still best to check with your accountant to understand the advantages and disadvantages.  Either way - Good Luck!