Does a Canadian who owns a US rental property have to file an FBAR?

Generally no. The FBAR (FinCEN Form 114) is required of a United States person — a US citizen, US resident, or US-organized entity, trust or estate — who has foreign financial accounts whose aggregate value exceeded US$10,000 at any time in the year. It is not required of anyone merely because they own US real estate. A Canadian resident who is not a US citizen or US tax resident generally does not file one. A dual citizen or other US person living in Canada may have to.

How does a Canadian landlord stop the 30% withholding on US rent?

US-source rent paid to a nonresident alien is generally FDAP income taxed at 30% of gross rent, with the payer acting as withholding agent. Electing under IRC §871(d) treats US real property income as effectively connected with a US trade or business, so you deduct ordinary expenses and pay graduated tax on net income instead. The election is made by attaching the required statement to a timely Form 1040-NR, and you give the payer a valid Form W-8ECI so they stop withholding 30% of gross. The election stays in effect until properly revoked.

When is Form 1040-NR due for a Canadian with US rental income?

For a calendar-year individual who received no US wages subject to withholding, Form 1040-NR is due June 15 of the following year. If you did receive US wages subject to withholding, the earlier April 15 date applies.

Does a US rental property have to be reported on Form T1135?

In the usual case, yes. Form T1135 is required if the total cost amount of your specified foreign property exceeded C$100,000 at any time in the year — the test is cost, not market value. CRA's T1135 instructions say to report real property outside Canada other than property used in an active business or used primarily for personal use, and state that rental property outside Canada should be included in that category.

BorderBird Academy · Checklist · v1 · Oct 2026

Canadian owning a US rental: tax checklist

A plain-language year-round checklist for a Canadian resident who owns rental property in the United States. Also includes a short reverse section for a non-resident who owns a Canadian rental.

General information, not legal or tax advice. Rules change. Confirm every item with a cross-border tax professional and the primary sources linked below before you file or withhold.

Who this is for

You live in Canada (tax resident).
You own (or are about to buy) a US rental property.
You are not a US citizen or green-card holder. If you are a US person, many US filing rules (including FBAR) change — see the FBAR note below and get advice.

The checklist in twelve lines

Get a US tax ID if you need one: Form W-7 for an ITIN, when you must file a US return and are not eligible for a Social Security Number.
US-source rent paid to a nonresident alien is generally FDAP income taxed at 30% of gross rent, and the payer — tenant or manager — is often the withholding agent.
The IRC §871(d) election treats US real property income as effectively connected, so you deduct expenses and pay graduated tax on net income instead.
Give the payer a valid Form W-8ECI so they stop withholding 30% of gross.
File Form 1040-NR with Schedule E. For a calendar-year individual with no US wages subject to withholding, it is due June 15 of the following year.
Check the state separately. Florida does not impose a personal income tax on individuals; a state that taxes nonresident rental income may want its own return — verify for your state.
FBAR (FinCEN 114) is a United States person's obligation. A Canadian resident who is not a US citizen or US tax resident generally does not file one merely because they own US property.
Canada taxes worldwide income: the same rent goes on Form T776 and into your T1.
Claim the US tax you paid on that rent as a federal foreign tax credit — Form T2209 / Line 40500 — so the same dollars are not taxed twice. Provincial treatment can differ (verify).
File Form T1135 if the cost amount of your specified foreign property exceeded C$100,000 at any time in the year. The test is cost, not market value.
Convert USD to CAD consistently. Many landlords use the Bank of Canada annual average rate for the tax year; daily rates for specific transaction dates are another common choice.
On sale, FIRPTA generally requires the buyer to withhold 15% of the amount realized, reported on Forms 8288 / 8288-A, and you still report the actual gain.

Deadlines at a glance

What	Due	Who	Source
US 1040-NR (no US wages subject to withholding)	June 15 following the tax year	Canadian NRA landlord with ECI / §871(d)	IRS
US 1040-NR (had US wages subject to withholding)	April 15	Same, if the wages rule applies	IRS
Canadian T1 (most individuals)	April 30	Canadian resident	CRA individual due dates (verify if self-employed)
Form T1135	Same as your T1 due date	If specified foreign property cost > C$100k	CRA
FBAR FinCEN 114	April 15 (auto extension to Oct 15)	US persons only	IRS
FIRPTA remittance by buyer	Generally the 20th day after transfer	Buyer / withholding agent	IRS
Canada NR4 information return (reverse case)	March 31 following the calendar year	Canadian payer / agent	CRA
Canada s.216 return if NR6 approved	June 30 following the tax year	Non-resident with a Canadian rental	CRA
Canada s.216 return (no NR6; refund path)	Within 2 years after year-end (verify)	Non-resident electing under s.216	CRA

If a due date falls on a weekend or holiday, the next business day usually applies — confirm on the linked page for that year.

⚠️ Important Disclaimer

This content is for informational purposes only and does not constitute legal, tax, accounting, or financial advice. Tax laws change frequently — always verify with the CRA and IRS or consult a qualified cross-border tax accountant before making decisions.

BorderBird is a rental-management and record-keeping tool. It is not an accountant and does not provide accounting, tax, or legal advice.

Get the full checklist

The full version has all ten items in detail, the fill-in boxes for your own ITIN, election year and W-8ECI status, the reverse case for a non-resident with a Canadian rental, the document pack to hand your preparer, and all 24 sources as footnotes.

Open the printable version — print it or save it as a PDF from your browser.

Keep the two sets of books without a second spreadsheet

Rent, expenses and receipts in one place, in both currencies, with the CRA and IRS yearly average rates applied for you — so the T776 and the Schedule E come out of the same records.

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