BorderBird
🏠 Ontario residents · 🌴 Florida rental property

Built for Ontario residents who own Florida rental property.

Toronto, Ottawa, GTA, Hamilton, London — Ontarians are the largest single Canadian buyer cohort in Florida. BorderBird is the tax-ready ledger that handles your Florida property's CRA + IRS filings in one place.

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.

Why Ontario → Florida is the most common cross-border combo

Three structural forces push Ontario residents toward Florida rental property more than any other US state. Understanding all three changes how you approach tax setup.

1. GTA pricing has decoupled from rental yields. A Toronto single-family detached home at $1.3M renting for $4,000/month trades at a 3.7% gross yield — and that's before property tax, insurance, maintenance, and Ontario's landlord-friendly rent control (currently 2.5% cap in 2026). Florida properties at $350,000-450,000 routinely rent at $2,500-3,500/month, producing 7-9% gross yields and 5-6% cap rates after expenses.

2. Florida has zero state income tax. Of every US state where Canadians buy property, Florida produces the simplest US-side tax workflow. Your only US filing is federal 1040-NR. Compare to California (state tax 1-13.3% on top of federal) or New York (4-10.9%), and Florida saves you a state return every year and reduces total US tax materially.

3. The snowbird logistics overlap. Ontarians who winter in Florida already know the buyer markets — Tampa Bay, Sarasota, Naples / Cape Coral / Fort Myers, Boca Raton, and the Treasure Coast. Direct flights (~3 hours) make property inspection trips, contractor coordination, and emergency visits practical year-round.

Your Ontario + Florida tax obligations

T776 (CRA)
Statement of Real Estate Rentals — Florida property reported to CRA

Ontario residents declare worldwide income to CRA on their T1. Your Florida rental flows through T776 with every USD line converted to CAD at the Bank of Canada annual average rate (2025 = 1.3978 CAD/USD). Even with Ontario's high marginal rates, the foreign tax credit normally absorbs your US tax.

T1135 (CRA)
Foreign Income Verification — almost always triggered for Florida property

A typical Florida condo or single-family home easily exceeds the CAD $100,000 cost threshold. Detailed reporting kicks in over $250k. The CRA penalty for skipping T1135 starts at $24,000 minimum on a missed property — far larger than the actual tax usually owed.

1040-NR (IRS)
US Nonresident Alien Return — Florida is the easy part

Florida is one of nine US states with no state income tax — your only US filing is federal 1040-NR. Compared to Ontario landlords with property in California or New York (state tax adds 6-13%), Florida is the simplest US side a Canadian can have.

Schedule E + Form 4562 (IRS)
Rental income + depreciation

Attached to 1040-NR. Florida's high property tax (typically 1.0-1.5%) and condo HOA fees both deduct on Schedule E. Hurricane-related insurance is high but fully deductible. 27.5-year straight-line depreciation on the building portion (Form 4562).

Section 871(d) election
One-time election that prevents 30% flat withholding

Critical for Ontario landlords. Without the Section 871(d) election, the IRS treats your Florida rent as FDAP and the property manager withholds 30% of gross rent — no expenses deductible. The election (filed with your first 1040-NR) switches to ECI treatment so you deduct expenses and pay tax on net only.

FIRPTA
15% gross-price withholding at sale (Florida is the largest snowbird market)

When Ontario residents sell Florida property, the buyer's closing agent withholds 15% of gross sale price under FIRPTA. On a $400,000 sale, that's $60,000 held by IRS for 12-18 months. File Form 8288-B 90+ days before closing to reduce withholding to your actual estimated capital gains tax.

Foreign Tax Credit (CRA T2209)
Avoiding double taxation

Pay US tax via 1040-NR first; claim Foreign Tax Credit on your Ontario T1 to offset the same income. Ontario marginal rate (up to 53.53%) is materially higher than US non-resident rates (~24-30% effective on rental net income), so the FTC almost always fully absorbs the US tax and Ontario tops up the residual.

How BorderBird helps Ontario → Florida landlords specifically

  • One ledger producing both T776 and Schedule E. Every rent payment and expense renders in USD for Schedule E and in CAD for T776 — without you re-keying anything.
  • Bank of Canada 1.3978 (2025) baked in. Annual average per tax year, applied consistently. The exact convention CRA accepts; the convention your accountant expects to see on T776.
  • T1135 threshold visibility for the Florida property. Your USD cost base displays in CAD so you can see the threshold position at any point in the year.
  • FIRPTA-aware at sale. When you eventually sell, the ledger pre-computes your estimated capital gains tax so your cross-border CPA can file Form 8288-B for reduced withholding at closing.
  • Florida-specific guides. Read Ontario → Florida (full guide) or city-level pages for Tampa, Naples, Sarasota, and others.

FAQ

Why do so many Ontario residents buy Florida rental property specifically?
Three drivers: (1) GTA real estate is priced beyond rental yield viability — Toronto single-family homes at $1.3M+ trade with cap rates under 3%, while Florida properties at $300k-500k cap at 6-8%; (2) Florida has zero state income tax — simplifying the US side of cross-border filing; (3) the snowbird overlap — Ontarians who winter in Florida already know the markets (Tampa, Sarasota, Naples, Cape Coral are Ontario-heavy buyer pools) and have year-round travel logistics established.
How does my Ontario marginal tax rate interact with US tax on Florida rental income?
You pay US federal tax first (via 1040-NR Schedule E, on net rental income at graduated rates). Then you report the same income on your Ontario T1 — but you claim a foreign tax credit (T2209) for the US tax already paid. Because Ontario's top combined federal-provincial rate (53.53%) exceeds typical US non-resident rates on rental income, the FTC fully absorbs the US tax and Ontario tops up to your full rate. Net effect: you pay the higher of the two jurisdictions' rates, not both.
Do I need to file in Florida specifically (state-level)?
No. Florida is one of nine US states with no personal income tax. Your only US filing is federal 1040-NR. You will file an annual Florida property tax bill (paid to the county tax collector — separate from income tax), and if you receive Florida sales tax exemption certificates for repairs / materials, those are state-level too. But there's no Florida state income tax return.
What about hurricane insurance and high condo fees — are those fully deductible?
Yes. Insurance premiums (including hurricane-specific riders) deduct on Schedule E line 9 (insurance) and T776 line 8690. Florida insurance is materially more expensive than Ontario rates — easily 2-4x — but that just makes the deduction larger. Condo HOA fees deduct as 'other expenses' on both sides. Hurricane-related repairs after a loss are repairs (deductible immediately) up to your insurance deductible; capital improvements beyond that depreciate.
Should I use a US LLC to hold my Florida property?
For Ontario individuals, almost always no. Cross-border CPAs widely advise against LLC ownership for Canadian residents because CRA treats US LLCs as corporations while the IRS treats single-member LLCs as disregarded entities. This mismatch creates double taxation, lost foreign tax credits, and complexity that outweighs the asset-protection benefit. Most Ontario landlords hold US property in their personal names (or sometimes a Canadian holding company with US LLC subsidiary in advanced structures, but only with specialized CPA advice).