Are you looking to explore new opportunities in the world of real estate investment? Then find out about investing in the US with Canadian X-border structures.
Michael Matthew is a Chartered Professional Accountant, Chartered Accountant (CPA, CA), based in Markham, Ontario, with more than thirty years of professional and business experience. His firm focuses on providing business advisory, tax planning, tax return preparation, and financial statements preparation for businesses ranging from start-ups to multi-million medium-sized enterprises.
In...
Are you looking to explore new opportunities in the world of real estate investment? Then find out about investing in the US with Canadian X-border structures.
Michael Matthew is a Chartered Professional Accountant, Chartered Accountant (CPA, CA), based in Markham, Ontario, with more than thirty years of professional and business experience. His firm focuses on providing business advisory, tax planning, tax return preparation, and financial statements preparation for businesses ranging from start-ups to multi-million medium-sized enterprises.
In this episode, Michael helps us discover the unique strategies, legal considerations, and financial implications that come into play when dealing with Canadian X-border structures.
Checkout: Raising Capital Without Rejection Full-Day Workshop (Online): https://investorattractionworkshop.com/
What you will learn from this episode for 28 minutes:
- Learn how to structure your real estate corporation when investing in the US and avoid tax and other legal implications.
- Find out how investment properties under a Canadian Corporation are being taxed and how income is brought back to Canada.
- Learn to ask for appropriate legal and financial advice so you don't get your money wasted.
Resources:
- Find out about Michael and his services? Click here: https://www.mmcpaca.com/
Topics Covered:
01:57 - How he got into real estate and help others invest in the US
04:31 - What corporate structure should you create when investing in the US
08:31 - Creating two entities for logistical reasons [steps to take when structuring a Canadian corporation in the US]
10:44 - Case in point of a family home property in the US: how income from it is brought back to Canada net of tax
13:05 - Cost to set up structure and maintain them in the US [rough annual estimate]
16:42 - Asset value in one LLC that you need to have before opening another one [and how many LLC's and C-corp you can open]
18:56 - What happens to the structure when you take joint venture partners and other Canadians on board
22:48 - Some more challenges Canadians investing in the US are facing
24:33 - How setting up your corporate structure can be done remotely
25:25 - Extending help to whichever part of of Canada
Key Takeaways:
"My basic philosophy is, your structure should only be as complicated as is necessary." - Michael Matthew
"Areas of concern are, as much as we have in common with our American friends, it is an actual different country and there is going to be more paperwork involved. There's just no other way to say it. And it is at times extremely complicated. So you're going to need some help with it." - Michael Matthew
"And then the other issue is the fact that you can be dealing in US funds all the time. And it's one thing if you're moving perhaps five or $10,000 in earnest money than when you're moving tens of thousands or hundreds of thousands of dollars." - Michael Matthew
"It's at your option. All this [set up] can be done remotely. All of this can be done in person. I won't kid you and say it's not gonna take a bit longer if it's done remotely. That's just the nature of it." - Michael Matthew
Connect with Matthew Michael:
- Website: https://www.mmcpaca.com/
Connect with Dave Dubeau:
- Podcast: http://www.propertyprofitspodcast.com/
- Website: https://davedubeau.com/home
- Investor Attraction Workshop: http://www.investorattractionworkshop.com/
- Facebook: https://www.facebook.com/thedavedubeau
- LinkedIn: http://linkedin.com/in/davedubeau
