Finance | Markets

Avoiding Dual Taxation While Investing in the US Market

MARCH 01, 2024
Written by John Makarewicz


As a Canadian investor, you may have concerns about investing in the US due to the potential for dual taxation.

Faris Capital Partners, however, has made this issue a priority, designing a tax-efficient legal structure with the help of experienced tax and legal counsel to ensure our Canadian investors can navigate the cross-border investment landscape with ease. Our legal structure allows Canadians to invest through a Canadian Limited Partnership rather than a US-based entity.


Avoiding Dual Taxation While Investing in the US Market


This setup offers several key advantages:


1. It opens the doors for any accredited Canadian resident, whether individual or corporation, to invest without the need to create a US entity. This simplifies the process and removes an extra layer of bureaucracy from your investment journey.

2. Our structure ensures that the tax you’ll be subject to will be the same, regardless of whether the Limited Partnership invests in US or Canadian property. There’s no additional tax for venturing into the profitable US markets.

3. It eliminates the need for tax withholdings, which can sometimes become a source of hassle and confusion for investors. This streamlined approach allows for more straightforward, efficient tax handling.

4. Our structure ensures that each year, you will receive a T5013 Statement of Partnership Income and Losses. This statement will allocate your share of income and losses based on your ownership percentage. You then report this information on your personal or corporate tax return, depending on your method of investment. This makes your tax reporting process seamless and straightforward.


Avoiding Dual Taxation While Investing in the US Market


Explore Opportunities with Faris Capital Partners. Are you an accredited investor looking to delve into apartment group investing in multifamily properties? Click here to arrange a discussion with our Investor Relations team and learn more.


Are you curious about what sets Faris Capital Partners apart? Download our information booklet to explore how we make it all possible and create value for our partners. Click here to access the booklet!

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