Best way for Canadians to receive income from U.S properties?

2 Replies

How should any one in Canada that is investing in the states and receiving income from properties in the States? 

Is it best to deposit cheques into a U.S dollar bank account in Canada or open on in the states? 

I heard that if you bring the money into Canada you can be doubled taxed? (if it makes a difference)

Also in terms of creating an LLC/registering your business in Canada or the U.S.

Thanks everyone,  

Originally posted by @Samuel Toby :

How should any one in Canada that is investing in the states and receiving income from properties in the States? 

Is it best to deposit cheques into a U.S dollar bank account in Canada or open on in the states? 

I heard that if you bring the money into Canada you can be doubled taxed? (if it makes a difference)

Also in terms of creating an LLC/registering your business in Canada or the U.S.

Thanks everyone,  

First of all, you should get advice from a cross-border legal and/or tax accounting specialist, not taking advice as gospel on a real estate forum. Having stated that, take this with a grain of salt. Most people I find are setting up Limited Partnerships domiciled in the state of where they hold the majority of their assets, and setting up bank accounts with a US bank. Canadians should never use LLC's unless they are setup properly (within a more complex web of entity structuring), as this when you can be double taxed.

@Elliott Milek can shed more light on this as he is both a US investor and cross border accountant.   

Thanks Chad.

Samuel I agree with Chad, the LLC structure that works for US citizens is typically not the most beneficial way for a Canadian to hold US property. Especially with the most recent IRS ruling pertaining to foreign owned single member LLC. Feel free to send me a message and we can set up a call to discuss.

Elliott