Owning a rental in a corporation

[Bill Bumface]

I used to do consulting work and bought a rental place under my company as an investment. Now that my consulting work is toast, the only thing the company is doing is holding my house.

I heard that the rule was to have a rental corporation you had to have a minimum of 6 employees?

By law do I now have to sell this sucker back to myself?

Financially should I sell it back to myself?

It's overall a near break even venture. I'm out money month to month, but the amount paid down on the mortgage every year is ever so slightly above that amount.

[Frank MetaMusil]

Sell it to yourself for $1

[Bill Bumface]

Sell it to yourself for $1

Should I just report myself to the CRA after I do that? ;)

Also of note, my company will have no capital gains to offset, so selling for a loss does nothing for me either does it?

[onetwo_threefour]

I am not aware of any rules stating that you can't own a single property in a corporation. It is possible that you may obtain some beneficial tax treatment if you do own many properties and become a 'rental corporation' as you called it but I am not aware of anything in that regard. Legally speaking you can hold whatever assets you want in the company and there is some potential protection from liability by leaving it in the company's name. So unless there was some valid reason to realize a gain or loss for the company I would say leave the ownership as it is.

[Winsor_Pilates]

Would agree with 1234^
A corp is treated like an individual legal entity, so I don't see why you can't just have 1 property.
Seems like a question that needs a good accountant to answer it though more so than Realtors.

[Bill Bumface]

Sweet! Thanks guys. I'll confirm with my accountant, but I'll leave the company open. I just need to figure out how to file my own taxes now that it should be relatively simple. If not, the few hundred seems worth the protection the corporation provides.