Canadian
Owners of U.S. Real Estate
Own with confidence. Stay compliant. Minimize taxes.
Owning U.S. real estate can be a great investment or retirement option for Canadians, but it comes with unique tax obligations. We help you understand the rules, comply with reporting requirements, and minimize your tax exposure in both countries.
Expert Cross-Border Tax Advice
Minimize Tax & Maximize Returns
Stay Compliant in Both Countries
Key Tax Considerations for Canadian Owners
Rental Income
U.S. rental income is taxable in the U.S. and must be reported in Canada.
FIRPTA Withholding
Buyers must withhold up to 15% of the purchase price when you sell U.S. real property.
Capital Gains
Gains on the sale of U.S. property are taxable in the U.S. and reportable in Canada.
U.S. Tax Return
You may need to file a U.S. tax return (Form 1040NR) annually.
Foreign Tax Credit
Claim a credit in Canada for U.S. taxes paid to avoid double taxation.
Common Scenarios
- Owning a vacation home in the U.S.
- Earning rental income from U.S. property
- Buying or selling U.S. real estate
- Financing U.S. property with a mortgage
- Leaving U.S. property to heirs
- Leaving U.S. property to heirs
- Holding U.S. property personally vs. in a corporation or trust
How IC Tax Can Help
- Determine your U.S. tax filing obligations
- Prepare and file U.S. tax returns (Form 1040NR)
- Plan for tax-efficient ownership and sales
- Calculate and minimize FIRPTA withholding
- Claim foreign tax credits in Canada
- Ensure compliance with all reporting requirements
- Provide year-round guidance for your U.S. property
Our Process
01
Understand
We learn about your U.S. property, income and goals.
02
Analyze
We review your situation and identify tax obligations in both countries.
03
Plan
We develop strategies to minimize taxes and ensure compliance.
04
Implement
We prepare and file your returns and required forms.
05
Support
We provide ongoing advice as your circumstances change.
Your U.S. Property. Our Cross-Border Expertise.
Get peace of mind knowing your U.S. real estate investment is structured and managed the right way.