chumley

Up since 4am trying to think of solutions to save my home
wondering if I could register the rental as a business and seperate any debt that will be incurred with the clena up from my personal finances
in the uk for example if you had say a small farm or a restaurant with a risk of being sued for poisoning a customer you would register as a limited company therefore the business would be sued but you would not be at risk of personal bankruptcy eg you would keep your own home and lose any business assets
anyone own a small business in Canada anyone know if you can do whatever the canadian equivalant is to registering as a limited company

SEE OIL TANK DISASTER THREAD FOR THE FULL STORY

http://britishexpats.com/forum/showthread.php?t=669315

airbornesapper

Chumley...I was in the rental game for 8 years recently selling. I expect you know this, that rental income is offset by expenses and the balance taxable. Hopefully incurring a refund.

So any losses you incur can be offset each year when you file your return. This issue here is that I don't think you have enough income to offset against.

When you sell would be another opportunity to balance things out, any gains offset by your loss in this matter and if you sell at a loss, that loss again could be offset against any taxes payable.

Simply stated, that is how I see it.

Hopefully you manage to sort this, it certainly sounds a crap situation. Best regards....AS

chumley

many thanks but im not concerned about tax loss off sets at the moment
what I am concerned about is losing my home to bankruptcy due the cost of the clear up at my rental property
I am wanting to seperate personal finance from business finance so to speak
so the business eg the rental property can go bankrupt and not me personally in order to protect the roof over my head

I diont pay tax on the rental income anyway as my total income is to low
we are talking small sums here the property is only worth between $30 and $35 000
the clean up costs could be unimaginable 10s of thousands of dollars

Aviator

As mentioned in your other thread, this won't work now. Your only option is to see a lawyer and then possibly an accountant depending on what the lawyer says. You cannot legally separate personal and business finances to avoid liability after an event has occurred.

Had you done this before you had any knowledge of the problems you may have got away with it.
Get professional advice

You could start here:-

http://www.legalinfo.org/general-con...-referral.html

chumley

appreciat e the link thanks but I am not trying to get away with anything this is not down to poor money management or stupidity my home is at risk and I do not have a dime simple as that

JonboyE

Before you do anything else you MUST talk to a Trustee in Bankruptcy. See here ...

http://www.bankruptcycanada.com/nstrustees.htm

You can't see your options right now, a trustee can explain them to you. Things might not be quite so bleak as they seem.