International Real Estate Tax Implications

[Andrew Banner]

Recently I formed a corporation with three others who are all Canadian in Canada and we made out first purchase. How do I go about understanding the tax implications that will come with doing business in Canada from the US? Who would I get in contact with? I’m not really sure who my best resource would be... Any feedback for be appreciated.

[Eamonn McElroy]

Very advisable develop a relationship with a CPA that is familiar with US compliance obligations surrounding intentional activity.

At face value, it appears you now have an annual 5471 obligation.  The penalties for this return start at $10,000... and that's just for non-negligent failure-to-file or filing an incomplete or inaccurate 5471.