# Real estate revenue



## Fire Marshal Bill (Feb 19, 2011)

Hi,

My business partner and I have a few properties. We deposit all revenue from these properties into a joint savings account from which also come out expenses.

As we now have a sizable amount in the account, I was wondering if it was okay for us to withdraw equal amounts as needed.


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## FrugalTrader (Oct 13, 2008)

Is your business incorporated? If not, you are taxed on the income minus expenses regardless of if you withdraw from the account. If it is incorporated, you'll need to decide if you want to withdraw as a dividend or salary.


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## Fire Marshal Bill (Feb 19, 2011)

FrugalTrader said:


> Is your business incorporated? If not, you are taxed on the income minus expenses regardless of if you withdraw from the account. If it is incorporated, you'll need to decide if you want to withdraw as a dividend or salary.


Thanks for the response.

We are not incorporated. Of course, we have always reconciled all income and expenses every year during tax time. That matter aside, there should not be any restrictions on us withdrawing funds from that account, correct? 

TIA.


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## sprocket1200 (Aug 21, 2009)

Fire Marshal Bill said:


> Thanks for the response.
> 
> We are not incorporated. Of course, we have always reconciled all income and expenses every year during tax time. That matter aside, there should not be any restrictions on us withdrawing funds from that account, correct?
> 
> TIA.


so you are drawing them out as salary? no restrictions, the gov't will love you!


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## FrugalTrader (Oct 13, 2008)

As a partnership, I do not believe there are any issues with withdrawing money from the account. Might want to ping your accountant as well.


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## GrossmanCGA (Feb 10, 2011)

If each of you filed a T776 Statement of Real Estate Rental in your personal tax returns each year, as you should have, then the net proceeds in your joint savings account are "after-tax" dollars to do with as you please, subject to any agreement you two have concerning the proceeds.
Best regards,
Eric Grossman, CGA


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## Fire Marshal Bill (Feb 19, 2011)

GrossmanCGA said:


> If each of you filed a T776 Statement of Real Estate Rental in your personal tax returns each year, as you should have, then the net proceeds in your joint savings account are "after-tax" dollars to do with as you please, subject to any agreement you two have concerning the proceeds.
> Best regards,
> Eric Grossman, CGA


Thank you. Grossman, I double-checked with my accountant and he confirms what you say here and Frugal Trader's most recent comment.

Thanks to all who responded.


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