Serious housebreaking question?

Long story, but I'll try to make it short. My boyfriend's parents have a habit of owning more dogs than they can care for. One went back to the shelter recently due to aggression (though it could have been solved by training) and they also have a chihuahua they got from a breeder they have bought from before. His mom didn't care for the chihuahua because she peed in the house (this part angers me, because she used pee pads and was too lazy to actually take the dog outside). To be fair, the breeder had never taken her out, either, and so they ended up with an un-housebroken and undersocialized dog. Recently, his sister bought another dog (sigh) and so his mom decided to get rid of the chihuahua. My boyfriend and I decided to take the dog, though we both work and think it's unfair to a dog coming from a home where there was always someone there, though we'll do our best. We have gotten rid of the pee pads and are trying to get her to go outside. There are a few problems, though: it's winter. In Canada. And she is distracted by EVERYTHING. I had her outside for a good half-hour today trying to get her to pee, but all she wanted to do was go back inside. The instant I did bring her in, she started to squat. So I raced her outside where I waited another half hour and still nothing. I even brought down one of her pee pads and put it on the ground, but no go.

I refuse to let this dog pee inside, but nor can I let her freeze to death (she does have a warm coat, but the snow's almost as tall as she is). We can't leave this dog at home all day until she is house trained. I know it can't be done overnight, but when she refuses to go outside, she'll never learn. Does anybody have ANY idea what we could try? Thanks in advance!