While you could set up a corporation or partnership to collect rental income, it’s not always advised to do so when you are purchasing a property with 1 - 4 units. These are not usually commercially-zoned, so they don’t require commercial mortgages. On the one hand, with a corporation, you’ll have the benefit of tax deductions. But, on the other hand, you may have a harder time being approved for a mortgage on a residentially-zoned property. Banks prefer to lend to individuals, rather than companies, in this case. That said, you will still benefit from tax benefits as an individual who owns a rental property. The interest on your loan can be used as a tax deduction. And, your capital appreciation will be taxed at 50% your personal marginal tax rate. If you were a corporation, capital appreciation would be taxed at 100% of your marginal tax rate. However, we are not accountants and lawyers. To find out the best financial scenario that suits your case in this regard, you should speak to one or the other. Professional accountants and lawyers can advise you further, and better than we can, as Vancouver mortgage brokers. Please see more on our website.