All Forum Posts by: George Hadjichristou

@Chad U. 

You may not be a professional but it seems you are absolutely correct. After receiving some advice from some cross border tax pros, that is exactly the route to take.

Thank you for your input! 

Cheers 

@Account Closed 

Are you referring to not using an LLC to purchase and flip the property just in this case of a cross border investor? Or are you just suggesting to generally flip in your own name instead of an LLC?

@Roy N. I really appreciate your input. From what I gather about your response, since his profits would be treated as pass-through then he would not be double taxed on it. In order to achieve this, do we operate with a simple agreement between him (as an individual) and my LLC? Or would he need to have a business that he creates that then invests in my LLC?

Thanks again for the input.

Hello Everyone,

First time poster but long time reader of all the good information and advice on BP.

Let me pre-face this by saying that I have reached out to some cross border tax specialists, and some I am still awaiting a response from, and some others have given conflicting advice. So it thought I would throw this out there to see if anybody here has any experience or knowledge on the matter:

I'm a US resident that purchases and flips houses through a single member LLC (taxed as an S-Corp). Now in order to do a certain flip, I need an investor to go in for 15% of the cost (with return of his investment + 15% of the profits). The investor I found is a Canadian. He is concerned about getting double taxed as his return would be payed out to him by my US LLC. I'm assuming he would have to pay US tax on that profit, and in part Canada would consider that income coming in as an investment dividend from a US corporation, and tax him again. Am I accurate on the assessment that he WOULD in fact be double taxed? And if so, is there any structure he could set up that could avoid double taxation on a one time Canadian part investor (who is not a member of the LLC nor on the deed of the property) on a single project ?

Any advice, knowledge,or guidance on the matter would be highly appreciated. 

Thanks,

George Hadjichristou