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Partnership Structure to Buying US Real Estate

Partnership Structure to Buying US Real Estate

If a Canadian partnership is buying US real estate and if one of the partners is using it personally, the claim would be that the partnership is not in the US and therefore the Canadian partner does not have to pay US estate taxes.  This area of law is still up for debate at times and not everyone agrees.
Another option could be for the partnership to have corporate status for US tax purposes.  Essentially, the partnership would be a foreign corporation and would not have to pay US estate taxes.
This can also be effected at times after  a partners death, which would allow personal income tax rates to apply on the gain on the sale of the property but can then shield US estate taxes being paid.  The strategy is complex to setup.