Hi there,
I have many opportunities to make realestate investments in the US and can
quick turn properties into cash. I have setup 2 Nevada LLCs and have yet to
engage them in business. I have also opportunities for joint venture seliing
opportunities in the US. My questions is since I am a Canadian citizen and
earn money here in Canada and wish to also earn monies in the US, how do I
do that and not get raped tax wise? I also enventually want to move to the
US to continue these ventures on a more focused and full time basis.
Also what would be the best strategy to do that as well?
Chris
==============================
david ingram replies:
To talk about moving to the US, go to www.centa.com and read the "Entering
the US" section in the second box down on the right hand side.
i have no idea why you have two LLC's in Nevada. I think someone saw you
coming.
If you buy and sell in the US, you will have straight income if you are
flipping properties. If you buy properties and rent them on a long term,
then the sale and a profit would be treated as a capital gain. In the first
case, you would be in business and in the second case, you would be a
non-resident selling US property and have to file form 1040N$, schedule E,
Schedule 4797, Schedule D and form 6251 to calculate the Alternative Minimum
tax which Non-residents pay on real estate sales.
After paying the US tax, you would add the amounts to your Canadian return
(convert to Canadian Funds) and claim the foreign tax credit on lines 431
and 433 of your Canadian return.
Note that although you can buy properties to rent and even buy a property to
flip, you can NOT fix, paint, or rent the properties yourself. You must
hire the painters, repair people and a rental agent or you can be deported
and barred from the US for 5 years under ER (Expedited Removal).
Answers to this and other similar questions can be obtained free on Air
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am a
permanent guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show
called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the internet
at
www.600AM.com <http://www.600am.com/>
Call (604) 280-0600 to have your question answered. BC listeners can also
call 1-866-778-0600.
Callers to the show and questioners on this board can also attend the
Thursday Night seminars on finance and making your Canadian Mortgage
Interest deductible.
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
Home office at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 9 AM to 9 PM 7 days a week (please do not fax or phone
outside of those hours as this is a home office)
email to taxman at centa.com <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com/> www.david-ingram.com
<http://www.david-ingram.com/>
Disclaimer: This question has been answered without detailed information or
consultation and is to be regarded only as general comment. Nothing in
this message is or should be construed as advice in any particular
circumstances. No contract exists between the reader and the author and any
and all non-contractual duties are expressly denied. All readers should
obtain formal advice from a competent and appropriately qualified legal
practitioner or tax specialist in connection with personal or business
affairs such as at www.centa.com <http://www.centa.com> . If you forward
this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
What's Related