Real Estate Investors
Structure your portfolio. Minimize your tax.
Real estate investing creates complex tax obligations — rental income, capital gains, HST on new builds, and the question of whether to hold properties personally or in a corporation. We help Toronto investors structure their portfolios for maximum tax efficiency and long-term wealth building.
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What We Offer
Who Is This For?
Why Choose Synergy
Rental Property Optimization
We maximize your deductible expenses — mortgage interest, property taxes, repairs, management fees, and CCA — to reduce your net rental income tax.
Capital Gains Planning
Timing matters. We help you plan property dispositions to minimize capital gains tax, including the use of the principal residence exemption where applicable.
HST Expertise
New build purchases and assignment sales often trigger HST obligations many investors don't anticipate. We ensure you're compliant and claiming every applicable rebate.
Corporate Structure Advice
We model whether holding properties in a corporation makes sense for your portfolio size, income level, and long-term goals.
Frequently Asked Questions
Do I have to pay HST on a pre-construction assignment sale?
Yes, in most cases. CRA has been increasing scrutiny of assignment sales, and the HST treatment depends on your original intent when purchasing. If you bought with the intent to flip, the sale is likely taxable as business income (not capital gains) and HST may apply. We review your specific situation and ensure you're reporting correctly — and claiming any applicable new housing rebates.
Should I hold my rental properties in a corporation?
It depends. A corporation can defer taxes on rental income at the small business rate, protect personal assets, and facilitate estate planning. But there are significant drawbacks: you lose the principal residence exemption, there are costs to set up and maintain the corporation, and extracting money triggers further personal tax. We model the numbers for your specific situation before recommending either way.
Can I deduct mortgage interest on my rental property?
Yes. Interest on money borrowed to earn rental income is deductible as an expense against that income. You can also deduct property taxes, insurance, repairs and maintenance, property management fees, advertising, and a portion of CCA on the building (not land). We ensure every eligible expense is captured in your T776.
What's the difference between rental income and flipping income?
Rental income is passive income taxed at your marginal rate. Flipping income is considered business income by CRA — taxed at your marginal rate with no capital gains treatment — and is fully subject to income tax. Since 2023, the Residential Property Flipping Rule makes this even more clear-cut: any property sold within 365 days of acquisition is automatically deemed business income, regardless of your original intent. CRA actively audits real estate transactions and the burden is on you to demonstrate a property was not held for resale. If you're flipping properties, it's critical to structure and document everything correctly from the start.
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