All Forum Posts by: Derp Gurp
Derp Gurp has started 2 posts and replied 3 times.
Originally posted by @Drew Sygit:
None of our Canadian investors use an S-Corp.
They either setup a Michigan LLC with an EIN number and use that to setup a USA bank account or they submit form W-8BEN for tax reporting and use a Canadian bank with offices in the US.
https://www.stilt.com/blog/2019/03/list-of-canadian-banks-in-usa/
Thank you for this info. I've been to a few Canadian banks and all of them didn't do commercial investing. Only residential. If they setup an LLC with an EIN don't get they double taxed?
Hope everyone is well. Currently I am selling my condo in Toronto and will have some money to invest. I've always found the US Market to be promising with all the tax benefits and cash flowing properties.
My Questions are as follows:
I've searched for many CPA's in Toronto. Managed to find one decent one who knows what he's talking about. Is $3000 a year worthwhile for them to do the taxes for Canada & USA. That is basically $250 a month and the way I see it it's basically a multifamily cashflow investment at 20% down. Are there cheaper ones that can be used in US and my personal taxes be done separately for cheaper?
Is making a C corp and getting a individual EIN per unit the best way? My understanding on the C corp is that if I pay myself in Canada a amount I would get taxed by IRS and CRA but, if I keep it within US and don't pay myself in Canada, I wouldn't be taxed in Canada. Would there really even be taxes with depreciation of some units being really high? I've had a few people and lawyers tell me taxes are basically gone due to depreciation and just do a 1031 later down the line when you're ready.
Since I will not be living in US until maybe 3 years later for my job and I would love to fly down to units but, due to covid it's not making it possible. I have to invest without seeing the units. What are some good steps in finding trustful property management companies, realtors who put in work?
All help is appreciated.
Thank you.
Post: Regarding depreciation and tax credits - Question
- Posts 3
- Votes 0
Hello everyone.
I've been scouring the internet for a while and I can't seem to come by depreciation. What an accountant has told me is that depreciation can stack year over year if you have excess leftover. For example year 1 $5000 tax credit not used year 2 $10000 etc.
He has also told me that these tax credits which are unused can be used to put a down payment on a property.
I have been trying to verify this but, can't find any information on this.
Does anyone have links or solid information/experience with this?
Please let me know I would really appreciate it.
Thank you.