Canadian Buying US Real Estate For Dual Purpose

[Impact Live]

As a Canadian, what is best way to buy real-estate in South Florida if I have a corporation operating in Canada that has interest in expanding services in the US; direct personally or indirect through one of the following entities…

1. Existing Canadian Corporation
2. Limited Liability Company
3. US C Corporation
4. Cross Border Trust

Due to the potential US business I am planning on conducting, I like the structure of an LLC or US Corporation to operate this business given costs to set-up are not excessive, but concerned about double taxation. This potential real estate investment will be shared for personal/family & some business use (laptop, some files, mailing address, etc.).

I would like to find out what the best way to purchase real estate from a taxation perspective given the dual usage (mainly personal, but some research that could lead to a US business expansion)?

Thanks for any insight?

[nelsona]

Remember that regardless of the entity, you cannot work while physically in the US. So you would not want to be choosing to write off any expenses on this property as a business (other than if you were renting it out).

[Impact Live]

Thanks! Without receiving expert counsel at this point - Upon my initial research and diligence, given viable projections, I would hire US representatives to do the actual work until we see how it goes before dealing with immigration procedures?

Just trying to find out what the best title approach (from a taxation perspective) would be for an initial real estate acquisition, given the potential business opportunity unveilling down the road?

[nelsona]

So, it would not be dual usage.

[JGCA]

where is the money comming from is it in the corp is this why you want to use corp because the money is in corp and you dont want to pull it out yourself and pay tax that is why you are considering corp. its a very bad idea to buy real estate in a corp unless its a business reason not investment type that will be taxed at hi rate and the shareholders have to take dividends to lower the rate down by recovering the refundable dividend tax rate. lf home is used by shareholders have a taxable benefit equal to fmv of rental plus cost of capital of corp funds used in acquistion.

llc no good either itstreated as a corp in canada same prob.

us corp is same taxable benefit prob as canada

a cross border trust is good for estate tax but you needus trustee and youcannot be a trusteeand beneficiarysoloss of controlland youprob have putup the initial donation thats gone

best way fund it pers and in yourname if its a rec property notanactive business

[blairgoates]

I favor keeping this simple and doing it as a propreitrorship. The liability issues can be reduced via inusrance and\or indemnity clauses.

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