Buying Real Estate in the US The Concise Guide for Canadians

by Walters, Dale

• ISBN13: 9781770400689
• ISBN10: 1770400680
• Format: Paperback
• Copyright: 2011-03-01
• Publisher: Self-Counsel Press

Summary

If you are a Canadian interested in owning US property, Buying Real Estate in the US: The Concise Guide for Canadians will help you navigate the daunting legal and tax issues surrounding buying US real estate as a foreign buyer. This book will guide you on a safer, clearer, and more economical path to reaching your goal of owning real estate in the US, while avoiding the possibly severe tax consequences and many other complications that may arise in the process.

Author Biography

Dale Walters is partner and CEO of Keats Connelly, the largest North American cross-border wealth management firm. He hold a BS in Accounting, is a Certified Public Accountant, Personal Financial Specialist, CERTIFIED FINANCIAL PLANNER Professional (US and Canada), and a NAPFA (National Association of Personal Financial Advisors) Registered Financial Advisor. He was named Top US Financial Advisor by Mutual Funds Magazine in 2001 and 2002. He lives in Arizona.

Table of Contents

Acknowledgments	p. xi
Introduction	p. xiii
A Rare Opportunity	p. 1
How the Opportunity Was Created	p. 3
The Three Types of Real Estate Transactions	p. 6
Traditional sale	p. 7
Short sale	p. 7
Foreclosure or bank owned property	p. 10
The Window of Opportunity	p. 10
Ways of Owning Real Estate	p. 13
Direct Ownership through an Individual or Individuals	p. 16
Types of Ownership	p. 17
Community property	p. 17
Community Property with rights of survivorship	p. 17
Ways to purchase an asset in common-law property states	p. 18
Indirect Ownership Using Canadian Entities	p. 20
Canadian corporation	p. 20
Canadian limited partnership	p. 21
Canadian inter vivos trusts	p. 22
Indirect Ownership Using US Entities	p. 22
Limited Liability Company(LLC)	p. 23
US corporation	p. 23
Revocable living trust	p. 24
Limited Liability Partnership (LLP) and Limited Liability Limited Partnership(LLLP)	p. 25
Income Taxes	p. 29
The Basics	p. 32
Rental Income	p. 35
Direction ownership	p. 35
Indirect ownership	p. 43
Selling the Property	p. 55
Foreign tax credits	p. 56
State Income Taxes	p. 60
Sales Taxes	p. 62
Nonresident US Estate Tax and Probate	p. 63
Green Card Holders	p. 66
As a Nonresident, When Are you Subject to US Estate Tax?	p. 67
The US-Canada Tax Convention (Treaty) Article XXIX B (Taxes Imposed by Reason of Death)	p. 69
How the US nonresident estate tax works	p. 76
A Dollar Is Not Always a Dollar	p. 80
Probate	p. 83
State-Specific rules of probate	p. 85
Other Information You Should Know	p. 87
Department of Commerce Filing Requirements	p. 89
Title Insurance	p. 96
Finding a real estate agent	p. 96
US mortgages	p. 97
Foreign currency	p. 98
Hiring a Property manager	p. 100
Conclusion	p. 103
Appendix I: Checklist for Buying Real Estate in the US	p. 105
Appendix II: Resources	p. 107
About the Author	p. 111
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