Buying real estate in the US, should I incorporate

Taxunderstand · Post by **Taxunderstand** » Thu Oct 11, 2012 5:36 pm

Hi,
I am planning to invest in residential real estate in the us. I would like to know if i should put the property on my name or incorporate. Also looking for cross border accountants in Ontario.
Thanks

JGCA · Post by **JGCA** » Fri Oct 12, 2012 2:13 pm

I do not see why you would incorporate, it has no tax savings to incorporate especially since as an individual you may even run it at a loss the first couple of years and get to deduct the loss on your personal return. There is no clear answer it depends on financing and if this is not an issue then I see no reason to inc on a residential investment in the US from a tax point of view notwithstanding liability issues if any that may arise.

nelsona · Post by **nelsona** » Fri Oct 12, 2012 2:32 pm

any estate tax concerns?

Taxunderstand · Post by **Taxunderstand** » Fri Oct 12, 2012 3:44 pm

Thx for the replies. I will be most likely buying all cash. Now, I will need to know the potential liabilities, taxes and others. I will be working with an accountant to avoid potential pitfalls. Hopefully someone who is active in this type of investment. I prefer someone in Ontario though.
Thank you

JGCA · Post by **JGCA** » Fri Oct 12, 2012 5:08 pm

Yes there is Estate tax if you own it personally depending on your worldwide assets vs through a corp. It would need to be looked at but even if he held it personally if he had a full recourse mortgage on it would reduce the estate tax basis that is why I said it also depends on financing.