Reed also has a book on real estate taxation issues that would be a useful read.Installment sales are very complicated from a taxation standpoint and investors and the IRS don't see eye to eye on how they should be taxed.

Does the IRS waive your penalties for your late fees because you complain about their taxation practices?

Julie:"Holding Company" is just a colloquial term for a corporation whose purpose is to hold assets and whose income is {primarily} passive from the point-of-view of the CRA.As I alluded above, the decision on whether to hold properties directly or via a corporation is driven by many factors ... taxation and the accommodation of {financial} partners being amongst the more prominent concerns.

One complication is that taxation from real estate can be different for a foreign national investing in US real estate.

Mainly this is because of taxation. 

I would first go to a an estate planning firm that is talented in federal estate taxation.

Uneasy times in the Calgary market should soon create some opportunity for investors.While consuming all of the information here on BP, keep in mind though much of it is universal, it does have a U.S.A. bias and things will be a little different here, particularly in finance, regulation and taxation.  

We then split renovation cost and split profits at time of sale.I want to most effectively handle taxation and then roll my portion of profits into another real estate investment.  

With that said are there any CPA/Legal people here that do have experience in setting up foreign investors who can shed some light on this as well as ideal states, entities and taxation for maximum benefit?

Where investment income is considered passive income, a holding company will pay income taxes at the full corporate tax rate and is ineligible for the taxation benefits of a CCPC.