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I own my work from home consulting company which is incorporated Federally with office in ON.I don't have much credit history in Canada but company is doing okay.I want to purcahse a home and major portion of it will be home office .My wife also works for same company.

What will be hte pros and cons:
1)If I buy home on company name & give benefits to my family living there?
2)If my credit approved ,buy home for family and company pays rent to myself & family?

Appreciate response!
 

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Method 2 is the most common. Pros: as your principle residence, it is exempt from capital gains tax when it comes time to sell it. Company doesn't pay "rent" in the sense of a FMV rent. Company pays a share of operating costs in proportion to the amount space exclusively used by the company. I believe it can also pay a proportionate share of mortgage interest. Read CRA's web site for allowable expenses for "business in the home".

Method 1) sounds unusual. I don't know what all the ramifications are. But to begin with it would be subject to capital gains tax. I don't think you can just "give" benefits to your family. The company books have to account for this benefit somehow. Nominally your family should be paying the company rent; but as owner you could make cash withdrawals from the company to reimburse the family. You should talk to an accountant.
Are mortgage rates and conditions for a business different than for a homeowner?
What are the implications for estate and family law if the marital home is in ownership of business, not the spouses?
 
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