A guideline was written down by a veteran to aid Canadians who have an interest in buying properties down south, to make the best use of the U.S real estate market.
The author of Buying Real Estate in the US: The Concise Guide for Canadians, Dale Walters said; “The number one mistake is they don’t own it the way they need to own it based on their circumstances. For example, they may own it as a Canadian corporation; well, that’s perfectly legitimate in Canada but owning real estate in that way in the U.S. causes double taxation.”
He told a news reporting site; “If you get a U.S. advisor, they may recommend they use an LLC. Hopefully, the word is out now that in Canada that would cause double taxation.” The book by Walter provides information on the best means for one to acquire a property and also emphasizes on the implications of tax for Canadians who buy properties down south.
Walter said; “The book is informational; it’s a tax book primarily. How do you own real estate in the U.S., what’s the proper way of owning it, the options, what are the tax consequences of the various ways of owning it?, because each way is a different tax outcome. How do you deal with rental income and what are the tax consequences of that? You’ve got potential liability issues, how to protect yourself, and non-resident estate tax potential – all of those things I cover.”
It’s a great risk and very frightening to buy real estate abroad, but Walters went against that theory that their chances for various kinds of investors, as well as transactions for those that are interested in buying vacation homes, those interested in commercial properties and those willing to become full-time landlords.
Walters further said; “The usual markets that have market appreciation potential which would be, generally speaking, the Sun Belt. Southern California, Arizona, Texas, and Florida, primarily. If you’re looking at some higher-risk, possibly higher opportunity, you still have places like Detroit and places like that.”
Other markets also present various kind of risk profiles. The two main reasons why Canadians are involved in U.S real estate is because of the accessibility of bargains and good deals and Diversification.