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Q: I am currently helping a few clients managing their properties (receiving rents from their tenants, remitting rents back to landlord with a small management fee). I plan to incorporate this as a business. Is it possible at all? I read that rental income is treated as passive income, but I am the property manager for my clients, collecting rents for my clients and remitting rents to them. How should I classify this income to be?

A: In Alberta, you cannot act as a property manager unless you are licensed or have a vested interest (an ownership interest) in the property.PM income would be active income, but you should not perform this service unless you meet the qualifications and follow the laws of your province. There are pretty stiff penalties if you don't.

 
 

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