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, ------------------------------------ David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists Home office at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" This from "ask an income tax and immigration expert" from www.centa.com <http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or www.featureweb.com <http://www.featureweb.com/> . David Ingram deals on a daily basis with expatriate tax returns with: multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio Houston Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax Immigration Wizard Antarctica Rwanda Guru Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer expatriate anti money laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions Grand Cayman Aruba listen to David Ingram Thursdays on Channel 114 Sirius Radio The Good Life with Jesse Dylan Daily at 12 noon New York time - david Ingram International Income Tax expert - real estate IRA's 401(K) Thursday Jan 5, 2006 will be at 10 AM Vancouver time, 1 PM Manhattan time. You can listen live on Channel 114 of your Satellite Radio or listen to the stream on www.lime.com <http://www.lime.com> . You have to have the latest version of Real Player to listen live on the Internet. You can get the latest version free by going to http://www.real.com/playerplus/index.html?src=downloadr <http://www.real.com/playerplus/index.html?src=downloadr> After you are up to date, you can listen to the live program by clicking on: http://lime.com/more/Radio_Play/index.html <http://lime.com/more/Radio_Play/index.html> If you are in Canada and have a question to ask and want to email it to me in advance, we will try and use it on the air and if not, I will make a real effort to answer it by email. But better would be a phone call if you live in the USA. Yep, a live free phone call is available from anywhere in The United States (not Canada yet) at 1-866-LIME-114 or 1-866-546-3114 Now, I do not have to tell you that if you want this service available in the future, support now would be nice. Help me show those Manhattan types that there is a real demand for a Canadian to be answering US tax questions with particular emphasis on those Cross-Border or out of country questions. Thousands of tax consultants can answer a child tax credit but not many can deal with foreign tax credits and earned income exemptions and a foreign vacation home or foreign bank accounts or that foreign pension you still have after an American works in Australia, or Algeria or Spain or Canada. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Garland, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. Pennsylvania, Rhode Island, Rockwall, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec City, New Brunswick, Prince Edward Island, Nova Scotia, Newfoundland, Yukon and Northwest and Nunavit Territories, Mount Vernon, Eumenclaw, Coos Bay and Dallas Houston Rockwall Garland Texas Taxman and Tax Guru and wizzard wizard - consultant - expert - advisor -advisors consultants - gurus - Paris Prague Moscow Berlin Lima Rio de Janeiro, Santaigo New York, Boston, Sacramento, Minneapolis, Salem, Wheeling, Philadelphia, Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg, Naples, Fort Myers, Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson, Green Bay, Minot, Portland, Seattle, St John, St John's, Fredericton, Quebec, Moncton, Truro, Atlanta, Charleston, San Francisco, Los Angeles, San Diego, Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa, Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham, Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence, Houston, Albany, Framingham, Cambridge, London, Paris, Prince George, Prince Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon, Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers, Berlin, Hamburg Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai, Beijing, Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red Deer, Olds, Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie, Davidson, Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey, Edinburgh, Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo, Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto, Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish, Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope, Penticton, Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis, Centralia, Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson, Fort St James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape Spears, Truro, Charlottetown, Summerside, Niagara Falls, Albany STAR WARS Answers to this and other similar questions can be obtained free on Air by david ingram on the last Sunday of each month. On the last Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram will be a guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com <http://www.600am.com/> Call (604) 280-0600 to have your question answered. BC listeners can also call 1-866-778-0600. Callers to the show and questioners on this board can also attend the Thursday Night seminars on finance and making your Canadian Mortgage Interest deductible. I will be at the seminar following the last Sunday of the month. ------------------------------ 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
What's Related