Built for Canadians who own Arizona rental property.
If you live in Canada and rent out a property in Scottsdale, Phoenix, Tempe, Mesa, or anywhere in Arizona, you file with CRA and the IRS every year — plus an Arizona state return (Form 140NR) and potentially a Transaction Privilege Tax registration if you rent short-term. BorderBird handles the income tracking so you don't manage three spreadsheets.
Create account, set up forwarding, add a property, add a tenant, forward your first email. Five steps, about a minute each.
Forward your payment and utility-bill emails — one filter, set once — and BorderBird auto-matches each to the right property and tenant, dated and queued for one-click import. It never connects to your inbox.
Years of payments in Gmail, Yahoo, Outlook, or Apple Mail? Forward them to your private BorderBird address and BorderBird imports them with their original dates.
Upload a signed lease PDF — AI pulls dates, rent, and tenant names. Renewals, vacates, and full tenancy history stay organized.
Your Arizona tax situation
Arizona rental income reported on Schedule E attached to Form 1040-NR. You'll make the Section 871(d) election on your first 1040-NR to treat Arizona rental income as effectively connected income — deducting mortgage interest, property taxes, insurance, management fees, repairs, and depreciation against gross rent.
Arizona taxes non-residents on Arizona-source income, including rental income from Arizona property. As a Canadian landlord, you file Arizona Form 140NR (Non-Resident and Part-Year Resident Personal Income Tax Return) for your Arizona rental income. Arizona's individual income tax rate was reduced to a flat 2.5% effective 2023.
Arizona's Transaction Privilege Tax (TPT) is a state sales tax on the privilege of doing business in Arizona — including rental of residential property. Long-term residential rentals (12+ months) are exempt from TPT. Short-term rentals (vacation/Airbnb) are subject to TPT at roughly 5.6% state + 1-3% city rates. If you rent short-term, you must register with the Arizona Department of Revenue and remit TPT monthly.
Arizona rental income is also reported on your Canadian T1 via T776, converted to CAD at the Bank of Canada annual average rate. US federal + Arizona state taxes paid generate a foreign tax credit (T2209) to offset CRA's claim on the same income. Provincial foreign tax credit may also apply depending on your province of residence.
If the adjusted cost base of your Arizona property (and other specified foreign property) exceeds CAD $100,000 at any point during the year, you must file T1135 with CRA. Arizona is one of the most active real estate markets — property values have appreciated significantly since 2020, making it worth monitoring this threshold annually.
When you sell your Arizona property, FIRPTA requires the buyer's settlement agent to withhold 15% of the gross sale price (or 10% if sale price is under $1M and the buyer intends to occupy). Apply this withholding against your actual tax liability on 1040-NR for the sale year. Arizona's own real estate sales tax (if applicable) is handled separately through the state return.
Why Canadian landlords choose BorderBird for Arizona property
- Schedule E + T776 from one ledger. Every Arizona rent payment tracked once generates a Schedule E USD export for 1040-NR and a T776 CAD export for your T1 — with the Bank of Canada annual average rate applied automatically.
- TPT visibility.BorderBird flags whether your Arizona property is in short-term or long-term rental mode based on lease duration. If you're in short-term territory, you'll see a note about Arizona TPT registration requirements.
- FIRPTA tracking.When you eventually sell your Arizona property, BorderBird's cost basis tracking helps your CPA compute the capital gain and determine whether FIRPTA withholding was over- or under-collected.
- T1135 threshold visibility.Arizona property values have appreciated sharply. BorderBird shows your US property cost base in CAD so you can see whether you've crossed the $100,000 T1135 reporting threshold this year.
- Email-forwarding rent auto-import. Forward the payment emails from Arizona tenants paying via Zelle, Venmo, or bank transfers and they are auto-detected and matched to your property. No CSV uploads, no manual entry.