2 - Friday, September 24, 1UKR North Shere News _ REAL ESTATE HOLIDAY HOMES Estate tax may affect buyer of U.S. condos THE THOUGHT of living the winter months in the U.S. sunbelt may be an attractive one. But think twice before you decide to buy a con- dominium or house. t's a move that may have far reaching consequences for your personal finances, Regaidiess of where you decide to invest in U.S, real estate, you will have to decide immediately whether you'll use the property solely for your personal use, or partly for rental purposes. This has a bearing on your decision, even if you only wish to recover some of your costs through rental revenue. One of the most critical facts about owning property in the United States, is that it can expose you to U.S. estate tax in the event of your death. This tax is on a By HARRY UHR Contritutinge Weiter Revenue Canada imputes benefits to share- holders using corporate assets, such as cars and real estate, But Revenue Canada has made an administrative con- cession in the case of real estate where the only pur- pose of holding it is to avoid U.S. estate tax. To qualify for this conces- sion, you must be able to prove that the corporation's only abjective is holding property for the personal use or enjoyment of the share- Normally, namely yourself or, in some cases, a group of related individuals. Accor- ding to Revenue Canada the rules state as well that the shareholder would be charg- ed with all the expenses of the property, with the result that the corporation would show no losses or profits. Once the corporation buys the property — and it dues what it is intended to do — you're in a safe position, from a U.S. tax point of view, So, in the your death, your estate will pay no U.S. estate lax. That's beeause no US. assets have changed owner- ship. The shares may change hands, but so long as the corporation is intact no US. estate tax has to be paid. holder, event oof BODEN PAGER: 980-8585] (24 HRS.)| “Serving the North Shore and the Sunshine Coast” i Specializing in income tax reduction through real estate investment both residential and commercial. RUBY LAKE MOTEL & RESTAURANT “MOTEL & RESTAURANT f Situated om approx. 5.4 acres on ihe shore of beautiful Ruby Lake, adjacent to Highway 101, a few M minutes from the BC. Ferry terminal at Earls Cove. Thts 75 seat restaurant with liquor tic., plus 10 B unit motel, plus 3 bedroom owners home with its own heliport is mow available, For further detaits LIFESTYLE | PROGRAMS ® SMOKING CESSATION © INTRODUCTORY | FITNESS sliding scale, starting with six per cent of the first $100,000 and then 12 per cent on the next $400,000. A $200,000 property, for example, may cosi your estate $14,000 in estate tax, A way to avoid U.S. estate lax is to have the property owned by a single-purpose Canadian corporation. gcontact’ JOHN BODEN at 980-8585 fi f CALL ME RIGHT NOW FOR A FREE APPRAISAL OF YOUR PROPER7Y & e STRESS r ne tee iatilall Jamis acess Fi MANAGEMENT © WEIGHT CONTROL Priced from| $89,500 Let us open the doors jor wou! ° and affordable lifestyle at Crown Point Villas. ABBOTSFORD’S PREMIUM ADULT COMMUNITY in a quiet residential setting. Live Royally on 11 acres of gorgeous landscaped gardens. With your special needs in mind, security, privacy and an active lifestyle Crown Point has created spaciously planned homes and topped it off with a 3000 sq.ft. resort style entertainrnent centre. Your home has the size and extra's you want. From the private courtyard entry to the luxurious master en suite and the gourmet kitchen. Three elegant furnished models for you to view. tr et Located in the heart of the Abbotsford, Matsqui area, minutes from the freeway and close to many eee eee ea hon Ramp churches, tennis courts, swimming pool, curling club, library, M.S.A. Hospital and 3 major shopping | OLD CLAYBURN ROAD Off Ramp | wt centres (Eaton’s and Woodward's) and for you golters, only 5 minutes from Ledgeview Golf & Country |... 8 THERE YOU ARE! ! ~ Club. 34889 Old Clayb Susan Shannon (604) 852-3188 soninue ny Open Daily 10-5 & evenings by appt.