Tax structure for Canadians buying US properties

1 Reply

Hi! I'm a Canadian investor interested in investing in US real estate. I have invested previously using LLCs owned by an LLP. An LLP was necessary to avoid double taxation because LLCs are not recognized in Canada (unfortunate as they are a fantastic structure for Americans). My understanding is that the LLP structure is no longer a viable option. Due to the 2017 US corporate tax cuts, a US corp subsidiary may be an option. I am interested if anyone on the board has already set up a similar structure and can provide some advice. I have a Canadian accountant (CA) and US accountant (CPA) but generally they are not comfortable with cross border tax issues which are complex. Any advice welcome. Thanks.

Originally posted by @Blair Taylor :

Hi! I'm a Canadian investor interested in investing in US real estate. I have invested previously using LLCs owned by an LLP. An LLP was necessary to avoid double taxation because LLCs are not recognized in Canada (unfortunate as they are a fantastic structure for Americans). My understanding is that the LLP structure is no longer a viable option. Due to the 2017 US corporate tax cuts, a US corp subsidiary may be an option. I am interested if anyone on the board has already set up a similar structure and can provide some advice. I have a Canadian accountant (CA) and US accountant (CPA) but generally they are not comfortable with cross border tax issues which are complex. Any advice welcome. Thanks.

LPs are still viable (single L)

Reach out to @Elliott Milek who does cross border accounting. 

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