Cross Boarder Taxation / Canadian investing in USA

[Kris Parks]

Hello Everyone,

First time posting:

My friend is a US resident that purchases and flips houses through a single member LLC (taxed as an S-Corp). In order to do a certain flip, he needs me to go in as an investor for 15% of the cost (with return of my investment + 15% of the profits). I am Canadian and concerned about getting double taxed as my return would be payed out by a US LLC and in Canada is viewed as a corporation. I'm assuming I would have to pay US tax on that profit; Canada would consider that income as an investment dividend from a US corporation, and tax me again; not allowing for any foreign tax credits.

Am I accurate in thinking that I WOULD in fact be double taxed? And if so, is there any structure we could set up that could avoid double taxation on this project?

Thanks in advance for any advice / guidance with how we should structure this.

Kris Parks