US Tax Issues for Canadian Owned Florida Land Trust
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This document discusses U.S. tax issues related to Canadian-owned land trusts in Florida. It lists three estate tax concerns and provides contact information for Celtic Wind Investment LLC, a company that can help address these concerns. The disclaimer notes that the information is for educational purposes only and that legal or financial advice should be sought from licensed professionals.
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US Tax Issues for Canadian Owned Florida Land Trust
- 1. U. S. Tax Issues Canadian Owned Florida Land Trust Presenters: Nicola Chin And Michael Belgeri, CDEI
- 2. ESTATE TAX CONCERNS #1
- 3. ESTATE TAX CONCERNS #2
- 4. ESTATE TAX CONCERNS #3
- 5. Contact Celtic Wind Investment LLC Weston Florida 954 707 6463 954 349 6959 Nicola.chin@hotmail.com
- 6. Disclaimer The following information is provided for educational purposes only. For legal opinion please consult an educated, licensed and experienced Attorney. For Financial opinion please consult an educated, licensed and experienced accountant before making any investment asset management decision. Celtic Wind Investment is a Weston Florida Limited Liability Company serving the business intelligence needs of licensed Florida Professionals and Investors. Celtic Wind Investment is an affiliate of the National Association of Realtors Learning Library Project, Real Estate Express, Legal Zoom and the Land Trust Service Corporation. Nicola Chin is the Founder and President. 2883 Executive Parkway, 33331 Learn More On Line at: CelticWindInvestment.com/myhouse
Editor's Notes
- Estate taxes are of paramount concern when Canadians own property in the U.S. der the present tax treaty Canadians are taxed in the United States upon their worldwide assets. Although this exemption recently went up to five million dollars for the years 2011 and 2012, it is scheduled to revert to one million dollars in 2013. The Canadian citizen is then taxed on the value of their United States property in proportion to the value of all assets held. As a result, if title is held in an individual name and the worldwide assets exceed the present exemption amount, the surviving spouse may be hit with a significant estate tax that starts at 26% and climbs all the way to 45% based on the value of the estate. If properly drafted, shares within the land trust not need to be revealed until the time of death thereby making it possible to artfully manipulate the reported property interest of the deceased and hopefully avoid estate tax.
- Another tool to avoid or minimize estate tax is to make children beneficiaries at the time of purchase thereby increasing the tax exemption amount by increasing the number of individuals possessing an interest in the land trust. There is no gift tax in Canada. If the funds are gifted to the children in Canada and transferred for closing there is no taxable event. However, if the property is located in the United States, a subsequent transfer of property to children will trigger a gift tax owed to the U.S.
- Yet another technique to reduce exposure to the U.S. estate tax is to split interest ownership within the Land Trust. Under such an arrangement, an individual may acquire a life interest in the land trust share and his children could acquire the remainder interest in the property. Upon the death of the individual, there would be no estate tax on the life interest, since the life interest would have no value upon death. However one caveat: Should the children die while holding a remainder interest, the estate tax would be assessed on the value of the remainder interest. As a practical matter, children can obtain term life insurance at lower costs (due to their age) to protect them from estate tax exposure.
- Remember, Before making any invest or entering any contract make sure you understand the facts, the tax and the neighborhood. South Florida has been a home away from home for millions of Canadians for decades. If you would like to keep your property acquisitions OFF THE PUBLIC RECORD, If you want to protect yourself and your family property for generations to come and if you want an edge when buying Florida property, start with a call to us, Celtic Wind Investment. I am Nicola Chin.
- MIKE: Celtic Wind Investment is a Weston Florida Limited Liability Company serving the business intelligence needs of licensed Florida Professionals and Investors. Celtic Wind Investment is an affiliate of the National Association of Realtors Learning Library Project, Real Estate Express, Legal Zoom and the Land Trust Service Corporation. Nicola Chin is the Founder and President. Here is Nicola Chin.