Canadian Corp loaning money for US Corp

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PS71
Posts: 1
Joined: Mon Dec 14, 2015 12:13 pm

Canadian Corp loaning money for US Corp

Post by PS71 »

I am a non-resident Canadian Citizen with Green Card living in the US. I do have a small business in Canada that I am not using anymore for invoicing but it does have investment accounts at a Canadian Bank. I would like to be able to take a loan from my Canadian company to purchase properties in the US. I am analyzing two scenarios:

1 - Take a loan from my Canadian company to myself as a person and then payback the loan with the rent collected. With this scenario, I was told that I have to pay myself dividend and pay the US taxes on them. I found it weird, as it is a loan and it will be paid back. Can you shed a light on this??

2 - Open a US LLC and then take a loan from my Canadian company to make the same investments but now using the LLC. Not sure if that will avoid the taxes or not, but hopeffuly it won't create other issue by having to use an LLC to purchase the real estate condos and then pay capital gain when selling them as a corporate.

If any other scenarios come to mind, please, let me know.
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