What are the tax advantages of this investment?


One of the benefits of participation in a limited partnership is the favourable tax treatment. In the first years of the project, the costs associated with syndication, and improvement of the property, are transferred to investors as a 100% tax write-off. Most of this write-off applies in the first year of the partnership, with lesser write-offs in subsequent years. Capital Cost Allowance (CCA) may also be written off as the project progresses, to reduce or eliminate taxable income of the project. Preferential tax treatment of capital gains, at only 50% income inclusion, also applies to the net proceeds of any future sale of the property. **

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