For Incorporated Real Estate Investors

Your Retained Rental Income Is Being Taxed at 50%. Here's How to Fix That.

See how incorporated RE investors are sheltering retained earnings from 50% tax — and using it to fund their next deal. 4 minutes.

See If You Qualify — Free 15-Min Strategy CallSee If You Qualify

Dundas Wealth is a licensed Canadian advisory firm (FSRA #37628M) — not a bank, not a fund.

The Problem

The Retained Earnings Trap for Real Estate Investors

Passive Income Tax Trap

Rental income invested inside your corp gets taxed at over 50%. Your small business deduction grinds down too. The more successful your portfolio, the worse it gets.

Extraction Tax Hit

Pull it out as salary or dividend? CRA takes 35–47% before you can deploy a single dollar toward your next deal. Either way, you pay before you build.

HELOC Concentration Risk

Your HELOC is tied to one asset. If that property drops in value, your credit line shrinks when you need it most. And it shows up as debt on your next mortgage app.

The Strategy

How the Structure Works

Fund the Policy

Your holding corp funds a corporate-owned tax-sheltered policy. It’s a business asset on your balance sheet.

Grow Tax-Sheltered

The cash value grows tax-sheltered. Exempt from passive income rules — no tax drag, no small business deduction grind.

Borrow Against It

Once cash value builds, borrow against it. A policy loan is not a taxable event. Use it as down payment on your next property.

Your money works in two places at once. The policy grows underneath. You deploy the capital on top.

See If You Qualify — Free 15-Min Strategy CallSee If You Qualify

Compare Options

Why Not Just Use a HELOC or Invest Inside the Corp?

Strategy	Tax Impact	Liquidity	Risk
Invest inside corp	50%+ passive tax	Medium	Market + tax drag
HELOC	0% tax	High	Tied to one asset
Salary / Dividend	35–47% personal tax	High	None
COLI + Policy Loan	0% tax on growth	High (days)	Not tied to RE market

Swipe to see more

A policy loan doesn’t show up as debt on your next mortgage application. A HELOC does. When you’re stacking properties, that matters.

Results

Real Estate Investors We’ve Worked With

Case Study: Ontario RE Investor

One of our clients with a growing real estate portfolio was about to lose his small business deduction because passive rental income was creeping past the CRA threshold. We set up a corporate-owned tax-sheltered structure. He kept the deduction. His wealth is growing tax-sheltered. And he’s still on track for early retirement.

$5B+

Coverage Quoted

1,000+

Families & Business Owners Served

ON, AB, BC

Serving Investors Across Canada

Is This Right for You?

See If You Qualify

This is for you if:

You own rental properties inside a holding corporation
You have $200K+ in retained earnings
You’re in Ontario, Alberta, or British Columbia
You want to fund your next deal without a 50% tax hit
You’re open to a 15-minute call to see the math

This isn’t for you if:

You’re not incorporated
You have less than $200K in retained earnings
You need cash in the next 30 days — this is a medium-term strategy

Greg Rozdeba

Co-Founder, Dundas Wealth

I’m Greg Rozdeba, founder of Dundas Wealth. We’re an independent, licensed advisory firm that specializes in tax-efficient wealth strategies for incorporated business owners and real estate investors across Ontario, Alberta, and BC.

This retained earnings problem is the #1 conversation we have. Book a call and I’ll show you exactly how much you could be sheltering.

See If You QualifySee If You Qualify

Common Questions

Frequently Asked Questions

Yes. This structure has been in the Income Tax Act for decades. It’s used by thousands of Canadian business owners and endorsed by accountants and estate lawyers. Your accountant can verify it.

Most accountants are excellent at compliance and tax filing. Tax-sheltered wealth strategies fall outside their specialty. We work alongside your accountant — not instead of them. Many of our clients bring their CPA to the second call.

We typically work with investors who have $200,000 or more in their holding corp. The math gets more compelling the higher the amount. If you’re close but not sure, the 15-minute call will clarify whether it makes sense.

Policy loans typically fund within days. This isn’t money locked away for 30 years — it’s parked strategically so it grows and stays available. The structure is designed to be accessible when you need it for your next deal.

No. A policy loan is not reported as debt on mortgage applications, unlike a HELOC. When you’re stacking properties and need clean ratios for the next deal, this matters.

We’ll review your corp structure and tell you exactly how much you could be sheltering from tax. No obligation. No pressure. If it doesn’t make sense for your situation, we’ll tell you straight.