If you are collecting rental fees on the rental of your property, then you will have to file a US Tax return and also report income against your World Wide Income for Canadian Tax purposes. Whether or not you have to pay taxes on the income is dependant on your own individual circumstances. If you earn a modest amount of income from the property, then your rental expenses will generally neutralize your profit and little / no taxes are due.
As a Canadian Buyer, I was advised by my accountant to get an International Tax Identification Number (ITIN) and to fill IRS FORM 8ECI. If I had not filled these forms with the IRS, then any renter of my property would be obligated to withhold XX% of the rental amount and submit to the IRS as a withholding tax.
Canadian buyers are advices to fill the FORM IRS XXXX 8ECI - for rental properties.
Upon the sale of the property, you may be required to file a US tax return to determine if
- providing that you are not considered a "resident of the United States" under IRS rules.
If you are
As a Canadian taxpayer, if you own a vacation home Florida and derive Rental Income from the property - you are required to report the income to both US & Canadian authorities. Whether the