NEW US ESTATE TAX LAW BENEFITS CANADIANS – For A While                                   

The tax legislation passed by Congress last year is something of a 1950s pop love song to businesses: sweet but not very deep.  It will likely have little impact on Canadians unless they own and operate a US company.  Typically, Canadians invest in US assets, particularly real estate, rather than run US operations.  The tax package has little to offer in that regard.  But one change does make a difference.  The new law doubles the US estate tax exemption amount.  Given the size of the increase, the US estate tax now leaves all but the wealthiest Canadians untouched.  However, this situation is temporary, making long-term estate planning for Canadians with US property tricky. Canadians And US Estate Taxes Canadians who own US assets (typically a vacation home) have traditionally been paranoid about US estate taxes.  It’s understandable.  The US estate tax rate has lurched between 35% and 65% in recent history, with a current…

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