Tax Guides for Canadian Landlords
with US Rental Property

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).

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.