Canadian brother buying a property in "constructive

My question is: Applicable to both US and Canada
QUESTION: My brother is currently a US citizen and he wishes to purchase a
house/apartment in Canada.
We have decided that I would purchase the house/apartment and in 1 to 2
years, I would transfer the ownership of the house back to him.  He plans to
remain a US citizen and will not be moving to Canada.  Would this be the
best way to save on taxes?  What taxes will he have to pay when I transfer
the ownership of the property to him?
Thank You
---------------------------------------------------------------------------
david ingram replies:
The answer is pretty simple and similar to another answer I just gave.  The
answer is a constructive trust.  If he puts up the money and makes all the
payments, etc, you may certainly hold it for him in a constructive trust.
However, you could end up with the BC government wanting another property
purchase tax and the Feds and BC wanting capital gains tax on the sale or
transfer.  You could spend a lot of time and money proving that it was his.
Why not buy it in trust for your brother and have the title registered that
way.  That is what you would likely do if your =brother was a minor for
instance.
David Stoller at (604) 922-4712 or Bill Spohn at (604) 926-8681 are two
lawyers in West Vancouver who could set the property up for you in that
manner.
Christine Louw (604) 990-3936 www.christinelouw.com-, John McKilligan at
(604) 987-1245 or (604) 687-5050, or Ross McDonald at (604) 807-0403 are
three realtors with extensive experience dealing with non resident owners,
------------------------------------
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------------------------------
international non-resident cross border income tax help assistance expert
preparation & immigration consultant david ingram, experts on rentals mutual
funds RRSP RESP IRA 401(K) & divorce preparer preparers consultants

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