Why a Canadian Should Not Use an LLC for US Investing with Elliot Milek

The Very Real Estate Effect Investing in Quebec

In the latest episode, Axel engages in a conversation with an expert accountant and cross-border tax specialist, Elliot Milek. They discuss key considerations for Canadians investing in U.S. real estate and why using an LLC may not be the best option.

Elliot provides insights into structuring real estate investments in the U.S., covering topics such as using personal names, corporations, partnerships, insurance, and financing. He emphasizes the importance of aligning the chosen structure with long-term goals.

Additionally, Axel and Elliot touch upon the complexities of tax implications for Canadians investing in the U.S. and why having a comprehensive understanding of both U.S. and Canadian tax systems is crucial.

This episode offers valuable guidance for Canadians looking to invest in U.S. real estate, highlighting the need for careful planning and the right structural choices.

What you will learn if you listen to the episode:

• Considerations for Canadians investing in U.S. real estate.

• Different property ownership structures, including personal names, corporations, and partnerships.

• The tax, insurance, and financing implications of property ownership structures.

• Why Canadians should avoid using an LLC for U.S. investments.

• The importance of understanding both U.S. and Canadian tax systems for cross-border investments.

• Real-life examples illustrating tax implications for property rental income.

• Key factors to consider when structuring investments, including the source of funds and investor requirements.

• The concept of flow-through entities for Canadian-U.S. investments.

• The significance of defining your investment objectives and goals.

• Geographical considerations when choosing U.S. real estate markets based on factors like owner-friendliness, tenant-friendliness, tax considerations, and structural suitability.

• Optimal structures for Canadians with capital building long-term income through multiple property purchases.

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