U.S. Investment Property Tax Implications

[katci]

My husband and I are looking into buying investment properties in Las Vegas, but would like to know what the tax implications are.

For example, if we bought 5 single family houses personally vs. in an Albertan Corporation vs. a Nevada Corporation. Rental income, capital gains and dividend payments are all gray areas for us. Does anyone have any experience or insights in cross-border deals?

Katherine

 

[GaryMcGowan]

Holding properties in the US will test the bravest of investors on many levels and one can expect to pay tax in both countries. Others will comment to as to specific tax implications. I do know you pay tax in the US and in Canada when you sell incorporated or not.

Read over the questions below to get some perspective on what you are facing.
 
Do you "think" or do you "know" there is money to be made in the Vegas real estate market? 

How will you get financing for these properties? Are they vacant? Can you prove the cash to close?

How will you prove to the lender that there is a steady stream of income coming from the properties if they are vacant? 

Is there a market for the type of property you are looking at? Is there an abundance of properties on the market there? Why?

Are people moving in or out of the area?

Do you have to pay strata/condo fees? Are the fees paid up to date on the entire complex? If not you can expect the fees to go up dramatically to cover the losses. 

Who will manage the property? Can you trust them? 

Are jobs being created or lost? 

Would you be speculating to answer these questions or do you have solid facts and answers? Speculator vs. Investor!!

There are many more questions and topics one could discuss here....

 

[GarthChapman]

Each State has different tax regimes. Read `The Canadian Snowbird in America: Professional Tax and Financial Insights into a Temporary U.S. Lifestyle`, by Terry Ritchie and Brian Wruk.

Available online at Amazon
http://www.amazon.ca/Canadian-Snowbird-Ame...l/dp/1550228048

And check out the other related books by the same authors you will see on the Amazon webpage above.

Hope that helps,

 

[gfranco]

My wife and I successfully bought a profitable property in Vegas. Successful because we gained valuable experience in dealing with short sales (don`t) and profitable because we found a good property manager who found us a tenant in five days, paying top dollar in rent. There are too many variables to discuss here however, so if you want to have a chat about this, please feel free to call me at the number below.

Gabby Franco, 403-815-6185