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Taxes on US Property Rentals - AG Tax LLP

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TAXES FROM RENTAL INCOMECanadians Receiving Rent On US Property

What needs to be filed, with whom and by when? Not knowing the answers can be costly and may mean missing deductions or being subject to a 30% withholding tax.

Rental Income And Non-Resident Tax

If you are disposing of real property situated in the U.S., you are subject to a non-resident withholding tax of 10% of the gross sales price.

Eliminating Your Withholding Tax From Rental Income

You may eliminate your non-resident tax withholding at source by advising your tenant that you have elected to file a U.S. tax return and by providing them with Form W-8ECI. You will need a U.S. tax identification number in order to make this election.

Tax Return Filing Requirement for Canadians Receiving US Rental Income

You must file a U.S. tax return if you have not had non-resident tax withheld. If you do not file the tax return within the specified time period, the IRS will disallow all deductible expenses as well as any related loss carryovers. In addition, the I.R.S. will assess penalties for late filing and underpayment of tax.

Eliminate the Guesswork, Contact AG Tax for Professional Assistance With:

  • Filing the necessary rental returns to help you minimize your tax liability
  • Reducing your non-resident tax withholding at source
  • Accurately preparing the appropriate forms on behalf of your agent

* This information is general in nature and does not constitute professional advice. We recommend that you obtain the appropriate accounting, legal or other professional advice before acting on any of the information contained herein.

GET SOLUTIONS FAST

Regardless of where you are located, if you have US or Canadian financial concerns, our cross-border, international tax experts can help you navigate the requirements in both Canada and the United States.

GET SOLUTIONS FAST

Regardless of where you are located, if you have US or Canadian financial concerns, our cross-border, international tax experts can help you navigate the requirements in both Canada and the United States

ABOUTAG Tax LLP
With offices across Canada, we are positioned to manage and process the full scope of your Canadian, US and US Canada cross-border tax filing needs.
OFFICEVancouver
12752 28th Ave, Surrey, BC, V4A 2P4
OFFICEEdmonton
104–4220 98 St NW Edmonton AB, T6E 6A1
ABOUTAG Tax LLP
With offices across Canada, we are positioned to manage and process the full scope of your Canadian, US and US Canada cross-border tax filing needs.
OFFICEVancouver
12752 28th Ave, Surrey, BC, V4A 2P4
OFFICEEdmonton
104–4220 98 St NW Edmonton AB, T6E 6A1

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