Just because you fly miles and miles south to enjoy a lifestyle that is totally different from life up in Canada doesn’t mean you want to leave all things Canadian back home. Many of our Canadian clients enjoy living near and socializing with other Canadians. They also like to do business with other Canadians. This is, in fact, one of the main factors that has made Diane Olson the go-to person for Canadians buying Real Estate in Arizona.

And she loves to return the favor and “keep it in the family.” So, when Diane needed work done on her car this week, she took it where she always does: Gerber Collision and Glass, a company that has Canadian roots that look a lot like her own.

Gerber, with 12 Arizona locations, is owned by The Boyd Group, a publically traded company headquartered in Winnipeg, the same city Diane calls home. Founded in 1990, it is traded on the TSX (Toronto Stock Exchange) and is the largest Auto body company in North America, with 220 total locations, about 180 of which are in the U.S.

“They do a great job and have excellent customer service,” says Diane Olson.

So if you want to support a Canadian business and get a great service at the same time, give Gerber a call the next time you need auto body or glass repair: http://www.gerbercollision.com/home.asp.

We will look at other local Canadian businesses we know and love, but in the meantime, check here:

http://www.canaz.net/canada-arizona-business/canadian-owned-arizona-companies.php

A lot of people think the holidays are a slow time for business. Diane Olson Team – didn’t get that memo!

I started working for Diane the day after the Thanksgiving Holiday, just one month before Christmas. I was hired to manage her marketing, but from the looks of things, she didn’t need much marketing!

The phone here in the office rings off the hook with requests for interviews, invitations to parties and events, and questions about buying real estate in Arizona. But more than anything, Canadians and other northerners call each and every day, to make solid plans to fly in and purchase their piece of the Arizona Sun.

They’re not coming to look or to think about it, or to hem and haw. They are prepared and educated, and they have complete trust in Diane and her team to help them make a good investment that will also provide years of fun times, and the lifestyle they just can’t get up North. Having been in Real Estate for more than 13 years myself, I know this is not the norm. Diane is different. Her clients are different.

“The initial response was fantastic. We just felt comfortable, and knew we didn’t have to look any further,” said Patricia Stutz, of Banff, Canada, who, along with her husband, John, put a home under contract the week before Christmas, after just one day of looking. “We had done so much research, screening ahead of time. We just knew the feel we wanted.”

Diane, a former police officer from Winnipeg, Canada, is a savvy professional who knows her clients and knows how to get them what they want. She builds rapport quickly, chatting easily with dignitaries, billionaires or regular folks, almost always finding a common acquaintance, activity or pastime. She’s like the Who’s Who Directory of Canada. And yet you are more likely to see her slim figure clad in jeans and a trendy top than a business suit. And if she didn’t know you were coming, you might even catch her in a cute little workout suit after a hard boxing workout.

Diane’s office is fast-paced and fun. Each team member has her own personality and strengths, and Diane appreciates each one. They have been carefully chosen to be her arms and legs in the field, taking care of the clients Diane has cultivated. She’s the Rainmaker. People feel like they already know her by the time they meet her. They have heard her speak at a seminar, seen a video or news clip, something in a magazine or received a raving review from a friend who worked with the Diane Olson Team.  

They come to have fun. They want a good investment. But mostly they are ready to buy a piece of our lifestyle.

And I have to admit that seeing my home town through the eyes of our Canadian friends has been a fantastic holiday treat. Instead of seeing the bustling malls, the traffic, the piles of laundry, messy house and always more work to do, I’m seeing the blue, cloudless sky, the jagged mountains that surround us, the beautiful desert, so much more colorful than most people imagine.  Through their eyes, this is a beautiful place, whether actively enjoying the outdoors while hiking or biking, or less actively sipping a cocktail on a patio overlooking city lights and mountain vistas; sloshing through the mud in an SUV to pick out the perfect home site, or sitting down at Starbucks to seal the deal,

“This isn’t a vacation,” said John Stutz, retired Mayor of the Exclusive Mountain Town of Banff. “It’s an adoption of a different lifestyle.”

In our continuing association with Dale Walters, he is offering a follow-up to a previous blog.

Dale Walters is a Cross Border Tax Expert and writer of Buying Real Estate in the US – The Concise Guide for Canadians and he wrote the following for my client(s).  

“On December 29^th, 2011, I posted a blog entitled “Things you may not know about using a Cross Border Trust SM”.  Some of the feedback I received since that time has prompted me to update that blog to make sure that potential Canadian buyers of real estate in Arizona have all the best information possible. 

The benefits of this structure that I did mention were correct.  The Cross Border Trust SM requires no ongoing maintenance or extra tax filings, and it does avoid probate.  However, it also avoids the problem of an Arizona Guardian ship procedure that is required if the owner becomes incapacitated.  It does so by providing replacement trustees and beneficial decision makers in the event that the owner of the trust can no longer look after his or her own affairs. 

It is also true that the Cross Border Trust SM does not avoid US estate tax.  However, it does offer some estate tax benefits that I did not previously mention.  For example, this structure typically involves a division of title between two trusts where a property is owned by a couple (legal fees should be the same for one or two trusts).  The advantage gained by doing this has several facets.  Firstly, the presumption of full ownership in the first decedent is defeated.  This presumption arises from section 2040(a) of the Internal Revenue Code, and can result in a joint owner’s estate being taxed on the full value of a property as though he or she owned it alone.  Where the owners are not residents of the US, the exception for joint ownership between spouses does not apply, so Canadians need to implement their purchase with this in mind.

Secondly, with title split between two trusts, the IRS will likely accept a valuation discount when the personal representative reports the value of the property in the decedent’s estate tax return.  The discount may be approximately 20% – 30% of the value of the deceased spouse’s share of the property.  As such, with the Cross Border Trust SM structure, each spouse would be taxed on less than half the value of the US real estate, as opposed to the entire value if it were held in joint tenancy, which can save thousands of dollars in US estate tax.

Beneficiary deeds, while effective at avoiding Arizona probate, will not provide the US estate tax advantages available with a Cross Border Trust SM.  Nor would a beneficiary deed address the incapacity issue.  The latter could be solved with other legal documents, such as an enduring power of attorney, living will and healthcare surrogate designation.  However, many clients may prefer the simplicity of creating one Cross Border Trust structure, rather than having a suite of different legal documents prepared to address issues piecemeal.

Where creditor protection is a concern, more sophisticated planning is certainly required.  The relative simplicity of both beneficiary deeds and Cross Border Trusts mean that creditors can enforce claims against any of the owner’s assets.  To protect yourself against the potential claims of creditors, separate entities such as limited partnerships or corporations are required.  Corporations often have adverse tax consequences for Canadians relative to other structures, and limited partnership interests are considered probate assets.  Another option would be to hold the property in a Cross Border Irrevocable Trust, which avoids US estate tax, probate, guardianship, and creditor issues.

As you can see, there are many factors to consider, and many options to choose from.  Usually, the particular circumstances and objectives of the client determine the most appropriate structure.  Often a combination of tools is required to customize the optimal estate plan.  That is why seeking advice from a cross border professional is always advisable.”

 I highly recommend you obtain advice from a Cross-Border tax expert and any questions or concerns you have about purchasing real estate in Arizona.

Diane Olson is a former Canadian police officer whose team of agents  has earned its reputation as Canada’s go-to realtor for Canadians looking to buy vacation and investment property in Arizona.

Potential home buyers scanning the Phoenix area for good deals should think about acting quickly. After a recessionary dip, the area’s real estate market is beginning to show signs of improvement. Resales ended 2011 on a strong note, generating a higher median sales price and fewer foreclosures in December, compared with the last month of 2010. 

The buyer’s market is starting to dissipate as competing buyers move in. The demand for homes is strong, and the inventory is shrinking. At the peak of the market, in 2009, MLS listed more than 50,000 homes in the Phoenix area. Since then, multiple listings have dipped to fewer than 18,000 homes, and bidding wars are once again becoming more commonplace.

Another telling development: New home builders are able to demand higher home prices, and they’re paring back some once-reliable incentives, which we haven’t seen here in years. 

What used to be “negotiable” when purchasing Phoenix real estate is not as negotiable.  The lower priced inventory is selling close-to or at list price if not over list price.  If you are serious about buying a house in Phoenix, “low-ball” offers are not happening now-a-days so you must be realistic on your offerings.  Plus, the Phoenix Metro comparative sold property prices have not caught up to the current market closing prices.  So remember, with less than average multiple listings available, you have to be more aggressive in the Phoenix real estate market if you want to own a piece of the Arizona sun!

When searching the MLS, don’t just search by price but also by location.  There are several areas to consider.  Make sure you do your due diligence and with the internet you can learn a lot about an area, including but not limited to crime and school districts.

You can get in on the action, too. But don’t delay or you risk being left out at a most opportune time. To learn more about “owning a piece of the Arizona sun,” please contact Diane Olson, 480-794-1106 or www.dianeolson.ca.

Diane Olson is a former Canadian police officer whose team of agents  has earned its reputation as Canada’s go-to realtor for Canadians looking to buy vacation and investment property in Arizona.

When you purchase real estate it is important to protect your home/investments; here is some  information and tips to keep in mind.

Examples of Types of Coverage:

Dwelling Coverage – insures the home

Personal Property – Covers damage to, or loss of personal property

Other Structures – Covers damage to other structures or buildings

Personal Property – covers damage to, or loss of personal property

Additional living Expense – covers additional living expense when incurred

Personal Liability – Covers personal liability

Medical Payments – Covers medical expenses

Additional Coverages can be purchased for: extra contents, replacement cost, personal property extensions, additional liability as well as coverage for specific area conditions (i.e. flood, earthquake, etc.)

How much coverage is needed?

Have enough to cover:

Your property and belongings (protect your pocket book)

Self protection (against lawsuits)

Lender requirements (if applicable)

Policy requirements (discuss with your insurance company agent)

Benefits of Homeowners Insurance:

• Coverage to repair or rebuild your home if it is damaged as a result of a covered loss
• Protects your personal property from disasters, accidental damage, or even theft
• Protects yourself from liability in the event that someone has a dispute with your over an incident on your property

Other tips:

• Research the insurer’s records for claims service (a discount on the price of insurance will not make up for slow claims processing)
• Is company financial stable
• ‘Risk’ is what the cost of homeowner’s insurance is based on
• Insure your home based on the replacement cost – how much would it cost to rebuild or replace items

This is just some food for thought.  Hopefully this will help you ask the right questions when you are investigating your insurance options.

Diane Olson is a former Canadian police officer whose team of agents  has earned its reputation as Canada’s go-to realtor for Canadians looking to buy vacation and investment property in Arizona.

 By law, Realtors cannot tell you where to buy a home, or steer you away from a specific area.  So where do you go to find out about crime or if the location you like is safe?

Realtors recommend you do your due diligence by driving around the area, take a closer look at the houses and take note of the people walking on the street, talk to the neighbors or local authorities.  Still, how do you know for sure this is the neighborhood for you? 

One of the pieces of information that the Diane Olson team provides all clients is the “Buyer Advisory”.  This is a resource for real estate consumers published by the Arizona Association of Realtors.  This resource has a variety of website links to visit, including one for the local law enforcement agency that can help answer your questions about the neighborhood you want to live in.

After you complete your area due diligence and purchase your new home, you still need to prepare your home for the times you will not be there.

If you’re only here in the winter:

•  It’s important to have a property watch company stop by each week, pick up any papers that have been discarded, check windows and doors, check under the sink for leaks, run the water in each sink and flush every toilet to help eliminate any odors in the pipes.

If you have a car:

• Ask them to start it up once a month to keep the battery charged.

These steps will give you piece of mind and your neighbors will appreciate the fact that you want to keep the neighborhood free of newspapers and that “vacant unattended house look”.   In addition, there are, of course, security systems with cameras that you can install in rooms that allow you to watch your house from Canada.  Best Buy sells these types of security systems starting around $300.  There are also security companies that you can hire to monitor your home locally.  These companies’ rates start around $25 to $30.00 per month.

In addition to taking care of your property, there is always a chance that your home can be vandalized, you need to be prepared.  Here are some suggestions:

• Take an inventory of your purchases.
• Take photos of your furniture, pictures hanging on the wall, and kitchen appliances, place them in a notebook or binder with the receipt of purchase attached next to it.

If anything should happen, burglary or fire, you have a record and photos to show the insurance agent of the item and the cost to purchase.

•  Mark your property, such as tools, kitchen appliances, electronics, TV, and pool equipment, either by etching each item with your name and phone number or with a permanent marker.

If property is recovered later from a burglary, the police will know how to contact you.

Update your records on a regular basis. As soon as you purchase a new piece of furniture, equipment, electronic device, or add to a tool collection, take a picture of it, log the serial number into a log book, data file or a folder.   Being proactive in protecting your property is always the best solution. 

Diane Olson is a former Canadian police officer whose team of agents  has earned its reputation as Canada’s go-to realtor for Canadians looking to buy vacation and investment property in Arizona.

In trying to answer questions or concerns that are commonly asked I have often turned to experts for answers in the areas I can’t advise in.  I introduced you to Dale Walters last week in the blog about how to title property in Arizona.  Dale has graciously offered to help address other inquiries and will be a featured contributor to our blog section.

Dale Walters is a Cross Border Tax Expert and writer of Buying Real Estate in the US – The Concise Guide for Canadians and he wrote the following for my client(s).

“The virtues of Canadians using a Cross Border Trust^SM (CBT^SM) when buying real estate in the US are being widely espoused.  However, there are some misunderstandings about what the benefits of using a CBT^SM really are.  In this blog I will attempt to clear up any misunderstandings.

The benefits to the buyer are relatively few, and they are:

1.       Assets held in the CBT^SM avoid probate at death.  Probate is the legal process of settling an estate and the cost can be as high as 3%.

2.       There are no ongoing costs, such as filing tax returns.

 All other benefits are for the children if the assets of the trust remain in the trust when they pass to the children.  Those benefits are:

1.       Assets are protected from the children’s creditors, including a former spouse

2.       Assets avoid US nonresident estate tax at the children’s death

3.       Avoids probate at the children’s death

 Here are the things the CBT^SM does not do for the buyer:

1.       No US estate tax benefits

2.       No protection from creditors

Some other things to note are that 12 states, including Arizona, allow the owner of property to name beneficiaries using a Beneficiary Deed.  The other states are Arkansas, Colorado, Kansas, Minnesota, Missouri, Montana, Nevada, New Mexico, Ohio, Oklahoma and Wisconsin.  This process works like the beneficiary designations on your RRSPs or life insurance.  Because the property passes via a beneficiary designation, there is no probate.  The cost of a Beneficiary Deed is de minimus, $50 or less, and the beneficiaries can be changed at any time before the last person’s death.

In my experience, buyers are not generally interested in the benefits the CBT^SM provides to the children, if you are, you should accomplish the same thing by incorporating those provisions into your existing estate documents.  After all, if these benefits appeal to you, shouldn’t all of your assets (or least most of them) pass via a trust to protect all of the assets and not just the US home?

 So in summary, if you are buying a home in Arizona, you can achieve all of the lifetime benefits of the CBT^SM for virtually no cost, or you can spend $5,000.  In both cases you can buy a large liability insurance policy to protect you from lawsuits.  If you are uncomfortable with the idea that the insurance may not be enough or may not pay when needed, then you should form an entity for asset protection.  I have discussed entity selection in the past, but to summarize, I suggest using a Limited Liability Partnership (LLP) if you are buying the property as a couple.  In most other cases, I suggest using a Limited Liability Limited Partnership (LLLP).

Next week I will discuss what you may not know about the Cross Border Irrevocable Trust^SM.”

I highly recommend you obtain advice from a Cross-Border tax expert and any questions or concerns you have about purchasing real estate in Arizona.

Diane Olson is a former Canadian police officer whose team of agents  has earned its reputation as Canada’s go-to realtor for Canadians looking to buy vacation and investment property in Arizona.

My clients frequently ask me how they should hold title when purchasing a property in Arizona. Since I am not an accountant or a lawyer, I can’t provide that advice therefore I contacted Dale Walters, a Cross Border Tax Expert and writer of Buying Real Estate in the US – The Concise Guide for Canadians and he wrote the following for my client(s).

 “There are three basic ways of owning US propriety;

(1) hold in your own name, and take out a large insurance policy, or

(2) use a Cross Border Trust (CBT), or

(3) Limited Liability Partnership (LLP), or a combination of a CBT and LLP

 Factors to consider:

1. Type of risks and potential magnitude of risks,
2. The risk tolerance of the buyer, and
3. The cost of the solution relative to the risk and the investment 

 The primary risks are:

Potential lawsuits

The potential for a lawsuit increases with certain types of properties and the number of properties owned.  For example, if the investor buys homes with pools and/or stairs, the risk increases. 

US probate

Probate is the cost of settling your estate at death and can be as high as 3%.  In many states such as Arizona, probate can easily be avoided by using a beneficiary deed.  If a beneficiary deed is used, the asset goes to the beneficiary(ies) directly and does not go through a probate, therefore there is no probate fee.

US nonresident estate tax

The risk of US nonresident estate tax is typically not an issue because of the US-Canada Tax Treaty. 

None of these solutions can accomplish everything, so you have to decide what you are most concerned with and protect yourself from that risk.  Because of the Treaty, estate tax is not a concern for most investors.  If you are buying a second home and not renting the property, you can own the home in your own name(s) and use a beneficiary deed to protect you from probate.  If you are renting the property, you should decide if owning the property in your own name and having a large insurance policy is enough protection.  If it is, then again, owning the property in your own name and using a beneficiary deed is sufficient.  If, on the other hand, you are concerned about the potential liability, you should own the entities in an LLP.”

The “Diane Olson” advice – contact a true cross-border tax expert, such as Dale Walters, and make sure it is one who is looking out for YOUR best interest and who explores all your options thoroughly (global asset picture).  This will be money well spent.  I have several trusted cross-border partners to recommend if required.

Diane Olson is a former Canadian police officer whose team of agents  has earned its reputation as Canada’s go-to realtor for Canadians looking to buy vacation and investment property in Arizona.

On a quite day some time back, my husband and I, were looking to do something… not sure what, just wanted to get out and about for awhile.  We had heard about and then saw on national TV where they highlighted the only working olive farm and mill in Arizona that has a great olive oil.  It is right here in our backyard.  So off we went!

Located at the base of the San Tan Mountains in Queen Creek is the Queen Creek Olive Mill.  They produce a boutique hand-crafted extra virgin olive oil using nine varieties of olives.  This is a family owned company who for more than a decade has been producing different olive varieties to see what grows best in the Arizona desert.   With results, in my opinion, some of the best olive oil around while practicing sustainable farming practices.  They are dedicated to the environment and health of their customers.

You can enjoy:

• ·         Tour and learn how they produce their olive oil
• ·         Sample their wide variety of the flavored oils, baked goods, pastas and sauces
• ·         Purchase their products (great gift ideas; gift sets, tapenades and spreads)
• ·         Enjoy shopping for all olive related items (a wooden olive spoon to die for!)
• ·         Visit their Tuscan inspired eatery
• ·         If you’re lucky, there might even be a wine tasting event   

The Olive Mill is located:

25062 S Meridian Road

Queen Creek, AZ 85142

Phone number: (480) 888-9290

Hours of Operation:

Monday-Thursday 9am-5pm

Friday 9am-8pm

Saturday 8am-8pm

Sunday 8am-5pm

You might want to check the driving directions before heading out on their web site or call as it can be tricky but worth the effort.

Hope you take the time to discover this local treasure and enjoy a stroll through the olive grove, a tour of the mill and some great food!

Diane Olson is a former Canadian police officer whose team of agents  has earned its reputation as Canada’s go-to realtor for Canadians looking to buy vacation and investment property in Arizona.

I have been asked over and over again how many days can a Canadian legally stay in the US.  As most know, Canadians wintering in the US are subject to US income tax if they exceed a certain number of days each calendar year. 

 Recently I spoke with Dale Walters, CEO of KeatsConnelly.  Mr. Walters is an expert on cross border taxation and is the author of Buying Real Estate in the US – The Concise Guide for Canadians.

 To determine the number of days, Dale Walters states the following:

“The confusing part is that there is a two-part test to determine if you have stayed too long and are therefore subject to US taxation.  The first test is the easy one; if you are in the US more than 182 days in any calendar year, you fail the test and are considered a US resident and taxpayer.  You do not want to fail this test because the options for fixing it are limited and can be expensive.  The second test is a formula based on the number of days you have spent in the US over the past three years, with the older years having less weight than the newer years.  In the current tax year (2011), each day counts as one day; in year two (2010), each three days count as one day; and in year three (2009), each six days count as one day.

Let’s assume that you are a snowbird that comes to the US every year from November 1 to March 31, which is a total of 151 days (152 in leap years).  You have clearly passed the first test as you were not in the US for more than 182 days during the year.  However, you failed the second test and if you do nothing, you are considered a resident of the US and are required to file and pay taxes in the US.  Here is how it works:

 Year 1 – 151      divided by 1    =       151

Year 2 – 151      divided by 3    =         50

Year 3 – 151      divided by 6    =         25

Total                                                    196   You have FAILED the test

Here is where Form 8840 comes to the rescue.  You acknowledge that even though you have failed part two of the test, you did pass part one and you are in fact a resident of Canada because of your “closer connection” to Canada.  Form 8840 asked you questions about where your permanent home and personal belongings are located, where your family is located, where you maintain you professional, social, political and religious affiliations, where your car is registered and from where your driver’s license is issued, among others.”

You must file this form every year you fail the second part of the test.  Do not expect to hear back from the IRS; no news is good news.  You can find the form at http://www.irs.gov/pub/irs-pdf/f8840.pdf

Diane Olson is a former Canadian police officer whose team of agents  has earned its reputation as Canada’s go-to realtor for Canadians looking to buy vacation and investment property in Arizona.