Canadian buying a rental in the State of Florida entity question

[Maripier Carignan]

Hello, I posted in another forum a similar question.. I am curious about what type of entity Canadians investors use for lets say 2-3 rentals in the State of Florida... in term of the less expensive yearly costs and annual tax returns fees.

Thank you

[Chad U.]

@Maripier Carignan

Note that recently the CRA announced that they will start treating LLP & LLLP's as foreign corporations as opposed to partnerships, so therefore you'll lose any tax benefits of holding in either of these entities. See article:

http://www.krp.ca/cra-changes-treatment-of-u-s-llp...

So you'll need to convert your LLLP to an LP by 2018 in order to keep the same treatment.  

This is not tax or legal advice but if I were you and only owned 2 or 3 sub $100K properties, with no other assets in the US would look into switching to your own name to avoid the complex and costly burdensome setup that you currently have. These costs really bite into your cashflow.  But Like I said, this is not legal/tax advice and you should consult with a cross border specialist before making any move.