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)