3 Tier Real Estate Structure

Question

1719 viewsDecember 16, 2020Accounting

0

Anonymous Posted December 14, 2020

Hi Alan

Thanks for your time and content. I have two residential properties owned personally and looking to buy a third commercial property. Lawyer suggested holding Commercial Property in Corporation and setting up another co. to lease the units and third co for Management Fees. What do you recommend as the most ideal tax structure for this investment, considering how expensive it is gonna be

Also I am looking to buy second Commercial in US. Do you suggest using US LP or personally

1 Answer

score 0 · Answer 1 · 2020-12-16T18:05:02+00:00

For Canadian tax purposes, the 3 tier structure works well. Make sure that the properties are profitable and generating positive cash flow before implementing the 3 tier structure. For US tax purposes, a US Limited Partnership will reduce your liability and help you avoid double taxation.

3 Tier Real Estate Structure

1 Answer

Mississauga's Thought Leader

REQUEST A FREE CONSULTATION

Pin It on Pinterest