Calling all Canadians invested in the USA

[Jared Comeau]

Good afternoon BP!

So my question is focused towards Canadians invested in the USA.

My group and I are going to be getting into the US market, hopefully by this time next year x and we are looking for some answers about your legal entities.

Now, I understand there's a Tax treaty between the two countries, however, what we do not understand is what entities we, as foreign investors, need to have in place before we get into our first deal.

We are in BC, and are super hopefully some of you might have some contacts for x-border CPA's, or something of that sort. As well as any potential advice on your legal structures.

Thank you

Jared

[Lance Lvovsky]

@Jared Comeau

There are certain entities in the US that are not viewed as tax efficient for Canadian tax purposes. Yes the two countries have a tax treaty. You will want to discuss with a CPA the best entity vehicle for tax efficiencies, taking into account total capital you will be investing in the US, short and long term plans for those assets, etc. in addition, state tax issues should be discussed. Lastly, US estate tax issues need to be covered too. Definitely good to speak to a tax advisor who can assist. Good luck.

[Jared Comeau]

@Lance Lvovsky but what I'm curious of, is, do we need an American CPA in Tennessee, or one from BC in Canada?

[Hai Loc]

@Jared Comeau

PM me I have resources

[Lance Lvovsky]

@Jared Comeau

Unless you can find a Canadian accountant who has expertise in US tax law.. it would be someone from USA. Does not have to be from TN.

[Jared Comeau]

@Hai Loc hey Hai!

I'm truly thankful for you allowing me to reach out to you.

[Stephen Fryer]

Hey @Jared Comeau

I live in Ottawa and invest in South Bend, IN. I'll pm you with some resources that can help you with tax questions and how to set yourself up to avoid the dreaded double taxation issues. 

[Jared Comeau]

@Stephen Fryer I very much appreciate that. Been talking with a few CPA's but, still very confused.

[Stephen Fryer]

Hey @Jared Comeau. Feel free to connect with me directly. I would be happy to share my experience. 

[Basit Siddiqi]

@Jared Comeau

You want to connect with an accountant who is familiar with how US real estate is purchased by foreigners(Canada).

There may be ECI(effectively connected income), FDAP(Fixed, Determinable, Annual, Periodic) and FIRPTA(Foreign Investment, Real property tax act).

You want to work with an accountant who knows how to apply for a US ITIN for you.