BorderBird
❄️ Canadian snowbirds · 🌴 Rental income from your sunbird property

Built for Canadian snowbirds who rent their US property.

Whether you rent your Florida or Arizona property only when you're not using it (Jan-Apr snowbirds), or rent year-round to a single tenant, BorderBird handles the day-count, vacation-home rule split, and CRA + IRS filing in one ledger.

Why landlords pick BorderBird
5-minute setup

Create account, connect Gmail, add a property, add a tenant, run the first scan. Five steps, about a minute each.

AI Gmail import

Rent payments, utility bills, and receipts detected automatically — matched to the right property, dated, and queued for one-click import.

Forwarded email history

Years of payments in Yahoo, Outlook, or Apple Mail? Forward them to Gmail and BorderBird imports them with their original dates.

AI lease extraction & history

Upload a signed lease PDF — AI pulls dates, rent, and tenant names. Renewals, vacates, and full tenancy history stay organized.

Snowbird rental tax is fundamentally different from pure-investor rental tax

The defining feature of the snowbird-landlord profile is mixed personal and rental use of the same property within the same year. This single fact cascades into a different tax workflow:

  • Day-count discipline matters double. Days in the US determine US tax residency exposure (SPT). Days of personal use vs rental use determine Schedule E expense deductibility (§280A vacation-home rules).
  • Vacation-home rules cap losses. If personal use exceeds 14 days OR 10% of rental days, the property is a §280A vacation home and rental deductions cap at rental income — no net rental losses allowed. Most snowbirds fall under §280A.
  • Below-market family rentals don't count. Renting to family / friends below market converts to personal-use days for the IRS split. Important to know before letting your son-in-law stay in the condo for the week.
  • Form 8840 closer connection becomes annual habit. Snowbirds who cross 122 days/year file Form 8840 annually to maintain Canadian tax residency. Skipping a year creates retroactive US-resident exposure.

Your snowbird-landlord tax obligations

Day count tracking
Substantial Presence Test (SPT) — first thing to monitor

US tax residency triggers if (days this year) + (1/3 × days last year) + (1/6 × days two years ago) ≥ 183. Most snowbirds stay under 122 days/year to remain safely under the test. Days in Mexico or other countries don't count toward SPT.

Form 8840 (IRS)
Closer Connection Exception

If you meet SPT but maintain stronger ties to Canada (primary home, family, healthcare, vehicle registration, voting), Form 8840 lets you remain a Canadian tax resident. File annually by June 15. Skipping 8840 in a year you crossed SPT means IRS treats you as a US resident retroactively — a much larger tax problem.

T776 (CRA)
Rental income from your snowbird property

Whether you rent out your Florida or Arizona property only when you're not there (4-8 months/year), or rent year-round to a different tenant, the income reports on T776 attached to your Canadian T1. USD converted to CAD using Bank of Canada annual average. Personal-use percentage matters — see FAQ.

T1135 (CRA)
Foreign Income Verification — snowbird property reporting

Triggered if cost base of US property exceeds CAD $100,000 — virtually certain for any snowbird residential property. Detailed Reporting (above $250k aggregate) requires per-property breakdown. Penalties for non-filing start at $24,000 minimum.

1040-NR + Schedule E (IRS)
US Nonresident Alien Return with rental income

Filed federally for the rental portion of your snowbird property. Schedule E reports rents, expenses, and depreciation. Personal-use days must be tracked — affects deductibility of expenses (vacation-home rules apply when personal use exceeds 14 days or 10% of rental days).

Section 871(d) election
Critical to avoid 30% FDAP withholding

Without Section 871(d), property manager (or you, if self-managing) must withhold 30% of gross rent under FDAP rules. Election (filed with first 1040-NR) shifts to effectively connected income so expenses deduct on Schedule E.

State income tax (varies)
Florida / Texas / Nevada = no state tax; AZ / CA / NY = filed

Florida and Texas (most common snowbird states) have no state income tax. Arizona has flat 2.5% (Form 140NR). California (1-13.3%, Form 540NR) and New York (4-10.9%, IT-203) require non-resident filing if you have rental income in those states.

FIRPTA at sale
15% gross-price withholding when you sell

When you eventually sell, buyer's closing agent withholds 15% of gross sale price (10% if buyer-occupant + $300k-$1M; 0% if buyer-occupant + ≤$300k). File Form 8288-B 90+ days before closing to reduce withholding to your actual estimated capital gains tax.

How BorderBird helps snowbird landlords specifically

  • Day-count tracking per property. Mark personal use vs rental use vs vacant for every day — produces the §280A split your CPA needs for Schedule E.
  • Vacation-home rule visibility.See whether you're tracking toward §280A vacation-home classification (14 personal days OR 10% of rental days) throughout the year, not at filing time.
  • Mixed-use expense splits. Property tax, insurance, HOA, utilities all split between personal and rental use automatically based on day-count ratios.
  • Bank of Canada FX + T776 for the rental portion. Canadian-side T776 reports the rental share in CAD; personal-use share has no T776 impact (just like Canadian primary residence).
  • Snowbird city guides. City-level pages for the largest snowbird destinations — Florida (Tampa, Naples, Sarasota) and Arizona (Phoenix, Scottsdale, Mesa).

FAQ

What counts as a 'snowbird' for tax purposes?
Tax authorities don't use the term. The relevant tax-residency definitions are: Canadian resident (still file T1 reporting worldwide income), US Substantial Presence Test passer (would be US resident unless Form 8840 closer connection claimed), or actual US person (rare for snowbirds). 'Snowbird' commonly describes Canadians spending 3-6 months/year in a US sunbelt state — staying under 122 days/year keeps SPT exposure manageable.
How do I split personal-use vs rental-use days on a snowbird property?
Track every day the property is occupied — personally (you, family, friends staying for free), rented at market rate, or vacant. The Schedule E split: divide expenses proportionally between personal and rental use based on days. If personal use exceeds 14 days OR 10% of total rental days (whichever is greater), the property is classified as a 'vacation home' under §280A and expense deductibility caps at rental income (no net rental losses). Most snowbirds operate under §280A vacation-home rules.
Can I rent to family / friends at below-market rate?
Yes, but it doesn't count as rental days for the personal/rental split — it counts as personal-use days (same as if you stayed yourself). Renting to family or friends below market rate effectively disqualifies the rental treatment for those days. The IRS specifically wants to prevent landlords from converting personal use into rental losses via below-market family rentals.
If I'm in Florida 5 months a year, do I owe Florida property tax?
Yes — Florida property tax is owed by the owner regardless of residency status. Property tax goes to the county tax collector, separate from income tax. Florida property tax rates run 1.0-1.5% of assessed value typically. Snowbirds with Florida property pay county property tax annually + federal 1040-NR income tax on rental income. Florida has no state income tax, so no Florida state return.
Should I switch to US residency to simplify tax?
Almost never advisable for snowbirds. US residency exposes your worldwide income (including all Canadian income, pensions, investments) to US tax. The administrative simplification gained is dwarfed by the worldwide-income exposure. Most snowbirds maintain Canadian residency, stay under 122 days/year in the US (or file Form 8840 if they cross 122 but maintain Canadian ties), and accept the dual filing as the price of cross-border life.