Question: Tax Implications for a Canadian investing in US multifamily real estate?

[Jagjit Singh]

Hello,

I'm from Toronto, ON (Canada) and I'm currently trying to understand what the tax implications would be if I were to invest in US multifamily (3-6 units) real estate. How will the capital gains and rental income be taxed (not just by US, but by Canada as well)?

I would also like to know what effect business structures have on taxation (LLC/ LLP/ LP). Apparently double taxation is one of the biggest hurdles for cross border investing.

I would really appreciate some sound advice about this, and if anyone knows someone who specializes in US-CAN cross border tax laws, please let me know.

A big big thanks in advance. (I find BP to be the most helpful community on the internet)

[Lauren Cohen]

When investing in any type of real estate in the U.S. as a Canadian, the entities that you set up are so important from the perspective of avoiding double taxation and legal liability. It is essential that you consult with an experienced cross-border team including attorney(s) and tax expert(s) to ensure that you access the right advice!