US Real Estate for Canadians: Tax Setup & Investing Tips

In this episode of the Wisdom Lifestyle Money Show, host Gillian Irving, a mortgage agent with LendCity Mortgages, interviews Michael Matthew, a Chartered Professional Accountant with over 30 years of experience. Michael shares his expertise on helping Canadians navigate US real estate investments, drawing from his background in business consulting and his own experiences as a landlord. The discussion focuses on the essential steps for setting up corporate structures to avoid double taxation, ensure liability protection, and optimize financing options. Gillian highlights LendCity's new program for foreign nationals seeking US mortgages, emphasizing the surge in interest due to Ontario's challenging landlord-tenant environment.

Michael introduces his "Triple C" structure for investors aiming to build long-term cash flow: a Canadian numbered corporation owning a Wyoming C corporation, which in turn owns state-specific LLCs for property holdings. He explains why Wyoming is ideal for C corps, citing no state income tax, low fees, strong privacy protections, and asset safeguards through charging orders. For LLCs, he advises registering in the property's state or as a foreign entity if expanding, with minor fees of $100-300. The conversation covers common pitfalls like buying in personal names, which can trigger capital gains taxes upon transfer, and the importance of obtaining an EIN early to avoid delays in banking and closings. As of November 2025, US corporate tax remains at 21%, with no major changes affecting this setup, though proposed bills like Section 899 could impact withholding taxes if enacted—Michael stresses consulting professionals for updates.

The episode offers practical advice for beginners, including evaluating landlord-friendly states like Texas (quick evictions in 3 weeks), Florida, Georgia, Ohio, Arizona, North Carolina, and Indiana to minimize risks. Michael warns against tenant-favoring states like California or New York, drawing parallels to Ontario's frustrations. He recommends balancing education with action, securing good insurance (noting vacancies over 30 days void coverage), and using bookkeepers for scalability. This insightful talk equips Canadian investors with strategies to scale portfolios efficiently while leveraging LendCity's financing support for US properties starting in the $200,000 range.