EP379 How Canadians Should Pay Themselves from a U.S. Company with Kristopher McEvoy

A Canadian Investing in the U.S. with Glen Sutherland

Content provided by A Canadian Investing in the U.S. and Glen Sutherland. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by A Canadian Investing in the U.S. and Glen Sutherland or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

2M ago 7:39

MP3•Episode home

In this episode, Glen Sutherland is joined by his personal accountant, Kristopher McEvoy, a Canadian CPA specializing in cross-border taxation. Kristopher works with clients investing in U.S. real estate, as well as those relocating or expanding businesses between Canada and the U.S. The discussion centers around a frequently asked question: what’s the most efficient way for Canadians to pay themselves from their U.S. real estate or business income? Kristopher explains that the answer depends on the ownership structure: If using a U.S. Limited Partnership (LP): You’re taxed annually on profits—not on withdrawals—so taking money out has no further tax consequences. If using a U.S. Corporation: Paying yourself personally via dividends or payroll can be highly tax inefficient, with a potential combined tax burden of up to 50–60%. A more efficient strategy involves using a Canadian corporation to own the U.S. corporation, enabling: Management fees Interest charges Intercompany dividends (typically subject to only 5% U.S. withholding tax under the current tax treaty)

369 episodes

#Podcasting Education #A Canadian Investing in the U.S #Glen Sutherland