74 karma · joined September 9, 2022
I think the 2 bigger taxes difference are: 1. Property tax in Canada is often 80% less than much of the US. (0.28% in Vancouver vs 1.3% in Bay Area, CA vs 2.2% in Austin, TX) 2. Interest on $750k is tax deducible in the US, however with low interest rates, many people just take the standard deduction anyway.
Some choose to register in Delaware to make it easier to convert to a Delaware Corporation in the future. If you live in California, you’d still need to register the LLC in California and may all taxes and fees to California.
Edit: added “over 4 years”
Let's say you invest $100k into a drilling fund. You can deduct intangible drilling costs in year 1, which is usually about 95% of your investment. So you save ($maginal_tax_rate * 95k) in year 1, and get a dividend (with extra tax break) of 10-20% per year for about 7-10 years.
When the oil slows down after 7-10 years, the fund sells the asset for 20-30% of your investment, and I believe you can realize that loss.