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shareownerbob
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Canadians at taxation of Lt's
Thursday, December 15 2011 05:43 PM
I am a Canadian and I have rental properties in the US currently held in an LPs with a C corp as the GP. The lawyer recommended holding no more than 5 in each LP. If I want to expand, I have to pay an accountant to prepare the taxes for each new one I set up not to mention the legal setup fees.
Do LTs have to file a tax return (get an EIN), or is the income passed through to the beneficaries and you only file at the personal level? Oh, and what about banking...does each LT need a bank account?
Mark Beselt
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Randy Hughes
Land Trust Expert-40+ years of experience
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Re:Canadians at taxation of Lt's
Friday, December 16 2011 11:48 AM
Mark,
Please see my comments below in BOLD.
I am a Canadian and I have rental properties in the US currently held in an LPs with a C corp as the GP. The lawyer recommended holding no more than 5 in each LP. If I want to expand, I have to pay an accountant to prepare the taxes for each new one I set up not to mention the legal setup fees.THERE IS A BETTER WAY TO DO THIS. PUT EACH PROPERTY INTO ITS OWN SEPARATE LAND TRUST FIRST (TO INSULATE EACH PROPERTY FROM THE OTHER). I WOULD NOT PUT MORE THAN ONE PROPERTY IN ANY ENTITY.
Do LTs have to file a tax return (get an EIN) NO
or is the income passed through to the beneficaries and you only file at the personal level?YES, IF YOU ARE AN INDIVIDUAL BENEFICIARY Oh, and what about banking...does each LT need a bank account?NO, THIS IS ANOTHER GREAT BENEFIT TO USING LAND TRUSTS
Randy Hughes
866-696-7347
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