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Canadians Investing in U.S. Real Estate
If you are a Canadian considering investing in U.S. real estate, there are a number of issues you face. The start with U.S./Canadian taxation and are followed by asset protection and predatory lenders. Each of these obstacles is easily overcome provided you implement the appropriate structure for your investments. U.S. real estate is at historical lows, which makes it a phenomenal investment but it can also be a tremendous liability.
As an avid real estate investor and asset protection attorney, I meet many investors from North of the border who have taken advantage of the historically low U.S. real estate prices, but unknowingly made the 3 mistakes I mention above. Why? The answer is usually something like this: “the group I was working with to purchase real estate recommended I use John Doe to set up my asset protection structure. I assumed he knew what he was talking about, not to mention, he was recommended.” Having worked with thousands of investors to create asset protection plans, this problem is not Canadian specific but also plagues U.S. investors. The best way to protect against bad advice is to arm yourself with a basic understanding of asset protection tools and their tax implications. I always tell a prospective client that in my opinion, the best asset protection plan is one that considers the tax implications, asset protection benefits, and ongoing maintenance costs. I am sure you can understand my position. If you create a plan that provides great asset protection but increases your annual tax burden, while doubling your state filing fees coupled with added tax returns, you may begin to question the wisdom in putting your plan into action.
Why Trust Anderson For Your Business Structuring Needs?
Comprehensive Assessment Tailored To You
The wrong setup of your business now could mean more taxes and liability later. That’s where we’re really different. We take a comprehensive look at your situation not only from a legal asset protection perspective but also from a tax savings and financial planning perspective.
Experience You Can Trust
Unlike other law firms, our consultants consist of attorneys and planners who travel nationwide to speak at conferences and seminars on subject matters concerning asset protection,
Take a look at these actual client stories to see how much of a difference an Anderson plan can make.
We set up a Nevada LLC for a client with significant savings. She was sued 3 years later for an environmental claim stemming from property she owned over 30 years before. Plaintiff wanted over $2 million in damages for the cleanup. After we disclosed that her assets were protected by a Nevada LLC and a HELOC on her residence Plaintiff accepted less than $100k in a settlement.
A bank wanted to pursue one of our clients for a deficiency judgement ($5.5 million) for commercial real estate he lost in foreclosure. Once the bank found out how we protected all of our clients remaining assets with LLCs and a Nevada holding LLC the bank’s attorney stated “we decline to seek a deficiency judgment given the complicated structure you have weaved for yourself”.
Our client purchased property in a LLC and it was later discovered the soil beneath the property was contaminated. The state sued the LLC to clean up the land. Client walked away from the property without any personal liability. Without the LLC he would have been on the hook for over $1 million.
Your Custom Entity Blueprint
Speak with an Anderson Professional Advisor to get your business planning blueprint to determine the best entity structure plan for you and your unique situation.