All Forum Posts by: Mike Helminger

Sorry to glom onto this thread, but thought it was relevant to the discussion.

Could someone provide a brief summary of how rental income in Canada, held under direct ownership (not corporation or another business structure) is taxed? I've read conflicting information on the subject.

Background: US citizen moving to BC (hopefully permanently)  later this year.

Sorry for the delayed response (I wasn't receiving email notification for some reason). Anyway, @Yonah Weiss I do not believe that interpretation is correct. Based on my understanding, these pots of money are treated differently in the US vs Canada.

The CRA changed its administrative position a few years ago to treat US LLPs as corporations for Canadian tax purposes, such that distributions from such an entity to a Canadian resident taxpayer are likely to be characterized as dividends.

https://agtax.ca/cras-taxation...

I am considering setting up a trust. It would be for kids of a relative and it would be a grantor trust or revocable living trust (not sure which). The trustee would be me.

If I place an LP fund which holds an LLC real estate syndication into the trust, and the LLC fund produces income in the form of distributions and capital appreciation/gains, could the 'trust instrument' be used to direct all incoming proceeds to be invested into a bank which then places funds into a 529 plan? Further, after a liquidation event of the LP-LLC structure (5-10 years down the road), can the trust be dissolved or what becomes of it?

Further, would taxable gains be reported on my 1040 and not on a form 1041?

I will be moving to Canada later this year. I have three syndications that I'm invested in: 1 self storage and 2 MHP.

I am curious what tax implications there will be as I become a Canadian resident. I know the US and Canada have a lot of tax treaties. Is depreciation and bonus segregation handled in a similar fashion in Canada? 

I know one of the main tax-advantaged strategies is to take bonus depreciation to really accelerate things. Will this work in Canada?

I read through this post (and several others) and am trying to grapple with the idea of UDFI:
https://www.biggerpockets.com/...
Scrolling down a bit, Chris Wooten states the following in the comment section: 
I’m not a CPA. If the syndicator is strictly providing you returns based on a preferred share or percentage of buy-in, then the syndicator is
holding all of the leverage, and you would not need to concern yourself with UDFI/UBIT.

Is this true? For example, if I invest in a self storage syndication, with 70% LTV, and I have a fractional share and only receive net distributions from the fund (quarterly or at liquidation events), would UDFI not apply to an account held in a SDIRA?

I'm looking to invest some funds with Scott's platform. Just curious on feedback from members on the forum how their syndications went/are going. I know he's considered the guru around these parts and has educated many a folk.

so basically:

every market is blistering hot

there are great deals everywhere for buyers, but

it's a sellers market

rentals only work if you really screen your tenant (assuming they all have covid-proof jobs)

I'm looking to invest in two properties in Pittsburgh (about $220k in total). I would like some recommendations for true turnkey companies there that people have used. 

Thanks in advance!