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How to Save Income Tax in Canada

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Saving income tax in Canada can be challenging but it nice to know some simple tricks. If you’ve got an investment property mortgage in the past and plan on selling it soon, the money you earn from this transaction will be added to your personal income and in turn drastically increase your income tax.

Income tax deduction for investment properties in Canada can be made simple if you go to the right institution.

Save Investment Property Taxes in Canada

In the past, if you saw an investment that was below market value and you knew you’d make money on it, you’d go to a financial institution and qualify for a mortgage first.
After the standard application process, the institution will income-qualify you. Once your mortgage application is accepted, you will be able to purchase that investment under your personal name.
However, when it comes to selling that asset and making money from it, the profit you earn will be added to your personal income and will push you into a higher tax bracket. This will force you into a situation where you’ll be paying a higher amount in income taxes because of that particular transaction.
This is where we can help you. At Freedom Capital was have a solution where you can save on income tax in Canada.

Freedom Capital’s Unique Option to Save Income Tax

At Freedom Capital, we specialize in commercial, construction, and private financing options. We provide the best alternative lending route to your unique financing needs.
Our lenders allow you to register investment homes under your company name. The traditional banks will ask for a history of filed income taxes of at least three years and that you have a solid cash flow and then allow you to register the investment property under that holding company. At Freedom Capital, we don’t require 3 years of financials.

The best option to avoid paying higher taxes is to register the property under a holding company rather than your personal name. Then, once you’ve sold the property and made a profit on that investment, you’ll pay the reduced CRA taxes on it rather than adding it to your personal income.

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