New Breakthrough Approach for Canadian Real Estate Buyers to Face Tax Challenges Head On
SP Larner, global real estate brokers in Maui, HI in collaboration with Dispute Resolution Collaborative, a mediation firm, both founded by Saul Larner, Ph.D., LL,M., MBA have exciting news for Canadians who are buying and selling real estate in Hawaii. Dr. Saul Larner announces the ALOHA COMMITMENT TRUST® which addresses the issue of double taxation when an individual from Canada purchases real estate in the U.S. Further, there are many additional features as explained on the attached addendum.
Basically, a Canadian can purchase real estate here individually or in a partnership and based on the U.S. and Canada tax treaty, the Canadian can deduct the amount of taxes paid in the U.S. as a credit on their Canadian tax return. Sadly, they are often misguided into purchasing the property in a limited liability company here. Later they find out that Canada doesn’t recognize a U.S. LLC, so there is double or triple taxation and they are liable for taxes as high as 80% of the selling price.
Further, purchasing in individual names leaves estate tax issues and a lack of asset protection and maintaining control of various aspects of the real estate, as explained in the attached addendum.
Dr. Larner states that “if he were to give the most useful gift to his clients, it would be a neon sign that says, “Never give up control of your money”. The Aloha Commitment Trust ® has many features to see that the property owner maintains control by taking advantage of additional features.. On the following pages these features to maintain control with this trust are outlined.
The concept of Aloha is one of gratitude, kindness, compassion and love and peace. A commitment is a promise or a series of promises. Commitments are more often than not kept when the parties both gain by the commitment of each. The new perspective with the Aloha Commitment Trust ® (A.C.T.) is that Aloha is much more than a greeting and the decisions are driven by the client’s desires as opposed to taxes. It is built on kindness and harmony—important attributes to keep in mind between hello and goodbye.
While this trust has asset protection benefits as well as estate planning tax safeguards it takes the spirit of Aloha to great heights in guiding the Canadian to focus on what they wish to accomplish with the property down the line not only from a financial perspective but more importantly for the benefits to future heirs per the wishes of the property owners. Primarily, the goal is to help Canadian buyers and sellers overcome their potential conflicts and roadblocks in future years.
One of the many features of the ALOHA COMMITMENT TRUST® is that it clearly answers the hopes and wishes for future generations. After the “safety net” to provide a set goal to the beneficiary, the remaining amount is used to provide income to family members to encourage responsible behavior.
This includes, but is not limited to education, self-sufficiency, worthy character , specific contributions, and preserving family values and beliefs.
Many couples regard the time of purchasing real estate to address the issues of marriage and defining the disposition schedule of assets. This may include a post-nuptial agreement or structuring beneficial ownerships in newly formed trusts and other holding mechanisms. Dr. Larner brings a wealth of experience and passion in his role as a real estate mediator as well. His expertise and acumen in real estate is unparalleled and his highest level of service and professionalism continues to differentiate himself as reflected in his having been the designated auctioneer and mediator of the $50 million Robert Taylor Ranch in Los Angeles. This is further evidence of the great job he can do for you.
Similar plans will, of course, work with foreign nationals from other countries. Here we use the international tax treaty between the United States and Canada as a foundation. However, based on other international tax treaties, the firm will skillfully create a somewhat similar mechanism. SP Larner are realtors in Maui, Honolulu and Los Angeles.
Dr. Larner holds a Ph.D. with a specialty in international economics, an LL.M. in international taxation and an MBA with a specialty in real estate. He is a member of Delta Theta Phi International Law Fraternity. He holds many professional designations. These include that of Certified International Property Specialist, Accredited Buyer’s Representative, Resort & Second-Home Property Specialist Certification,Seniors Real Estate Specialist Designation, Certified Residential Specialist and Accredited Auctioneer Real Estate, just to name a few.
He is a member of the Masons, Scottish Rite and Shriner’s. Further, he is a member of the Eagle Scout Alumni Association. He has served on Boards of Directors including the Chinese American Real Estate Professional Association.
Real estate is an inanimate object. It animates when people transact purchases and sales based on their individual needs and what they wish to accomplish. What all buyers and sellers have in common are their various needs for a wide latitude of features in their purchase and sale agreements as well as flexibilities as to the mechanisms such as maintaining control to navigate in various directions without being held back with tax and family issues.
Therefore the following pages outline the main advantages of the ALOHA COMMITMENT TRUST ®. You may discuss any of these features during your complimentary one hour consultation.
Please contact Dr. Saul Larner, principal of SP Larner at (808)649-8318 in Maui or at sold@splarner.realtor. for a free, one hour consultation. Their website is www.splarner.realtor