Investing in US real estate as a PR

[AkkiV]

Hello everyone,

As a Permanent Resident of Canada, I am looking to partner with a US based friend to make a real-estate investment in the US (basically buying a property and putting it on rent).
Could someone please let me know if there is something in particular I should be concerned about going forward with the investment? e.g. not being a Canadian citizen while making the investment, forming an LLP vs LLC, double taxation in Canada and US, any other complications on getting the monthly rents and the eventual sale amount of the property back to Canada?

Any guidance would be highly appreciated.

Regards,
Akki

 

[jmbell]

Do not use an LLC. The tax effects in Canada for an LLC mean you will likely be double taxed as Canada treats it as a corporation, not a flow through. An LLP should be ok.

 

[ChristineHermer]

I was also a bit unsure about all the details. A few things stood out during the process. First, forming an LLC can often be simpler than an LLP for cross-border investments. The LLC structure usually offers better protection and is easier to manage, especially if you’re looking to avoid double taxation. As a Permanent Resident of Canada, I found the tax treaty between Canada and the U.S. really helpful in avoiding being taxed twice. Make sure to speak with a tax advisor familiar with cross-border investments.

Something else to consider is how you'll manage the property. Having good property management in place is crucial, especially if you're living abroad. I had a positive experience with property management in Montreal that made things run smoothly without me being physically present. They really kept things organized and took a load off my mind. You might want to look for something similar in the U.S., as it can make handling monthly rents and eventual sales a lot less stressful.