Cross-Border Landlord Tax Topics

A complete guide for Canadian residents who own rental property in the US, covering both CRA reporting requirements (T1135, foreign income) and IRS obligations (1040-NR, Schedule E).

Canadian snowbirds who spend more than 122 days per year in the US may meet the IRS Substantial Presence Test. Learn how Form 8840 (Closer Connection) protects your Canadian tax status.

Canadian landlords who pay US tax on their US rental income can claim a foreign tax credit on their Canadian return to avoid being taxed twice. Here's how the credit works under the Canada-US treaty.

Everything a non-resident landlord needs to know about the NR4 slip — what it is, who issues it, how Part XIII withholding works, and how to get a refund via a Section 216 election.

A detailed walkthrough of every line on CRA Form T776, with examples for Canadian landlords and non-residents filing a Section 216 return.

Part XIII of the Income Tax Act requires 25% withholding on gross rents paid to non-residents of Canada. This guide covers who must withhold, how to remit, and how to reduce the rate.

The Section 216 election lets non-resident landlords file a Canadian tax return on net rental income instead of paying 25% on gross rents. Most get a significant refund.

Filing an NR6 with CRA allows your property manager to withhold Part XIII tax on net rental income (after expenses) instead of the full 25% on gross rents. Here's how to file it.

Canadian residents who own US rental property worth more than CAD $100,000 must file the T1135 Foreign Income Verification Statement with CRA. Here's what to report and how.

CRA requires US rental income to be reported in Canadian dollars. The CRA accepts the Bank of Canada annual average exchange rate for converting annual rental income. This guide explains how to use it.

Capital Cost Allowance (CCA) is the Canadian equivalent of depreciation. Landlords can deduct CCA on their rental property on Form T776, but must recapture it when they sell.

Many Canadian tenants pay rent via Interac e-Transfer. CRA treats e-Transfer payments as income received on the date of deposit. Learn how to properly track and record these payments for tax purposes.

Income from Airbnb and other short-term rental platforms is taxable in Canada. Depending on services provided, it may be rental income (T776) or business income (T2125). GST/HST may also apply.

Long-term residential rentals are generally GST/HST exempt. But commercial rentals, short-term rentals (under 30 days), and new construction rentals have GST/HST implications. Complete landlord guide.

Canadian landlords with US rental property can use Schedule E (attached to Form 1040-NR) to deduct mortgage interest, property taxes, depreciation, and other expenses against US rental income.

Canadian landlords who own US rental property need an Individual Taxpayer Identification Number (ITIN) to file US tax returns and comply with FIRPTA. Step-by-step guide to applying.

When a Canadian sells US real estate, the buyer must withhold 15% of the gross sale price under FIRPTA. This guide explains the withholding rules, how to apply for a certificate to reduce withholding, and how to report the sale.

US persons living in Canada (green card holders, dual citizens, substantial presence test passers) must file an FBAR if their Canadian accounts exceed $10,000. Complete guide to FinCEN 114 requirements.

Canadians with US rental property can deduct depreciation on Form 4562 (27.5-year straight-line). Unlike CCA, US depreciation recapture is taxed at a flat 25% rate on sale.

The Canada-US Income Tax Convention affects how rental income is taxed on both sides of the border. Key provisions include reduced withholding rates, tie-breaker rules, and foreign tax credit eligibility.