Glossary

1040-NR

U.S. Nonresident Alien Income Tax Return (IRS Form 1040-NR)

Form 1040-NR is the US income tax return filed by a nonresident alien to report US-source income that is taxed on a net basis. A non-US owner of US rental property attaches Schedule E to a 1040-NR to report net rental income at graduated rates, after electing (via IRC §871(d)) to treat the rental as effectively connected income.

Who it applies to: A non-US person (e.g., a Canadian) with US rental or other effectively connected income.

Key facts

Form: IRS 1040-NR
Reports: US-source income (rental via Schedule E)
Due: April 15 — or June 15 if you had no US wages
Requires: An ITIN or SSN

How it works

Elect under IRC §871(d) to treat the US rental as effectively connected income, taxed on net at graduated rates.
Report the rental's income and expenses on Schedule E and attach it to the 1040-NR.
US tax paid can generally be claimed as a foreign tax credit on your Canadian return to avoid double taxation.

Go deeper: Non-Resident Landlords: cross-border tax · Schedule E calculator

Related terms

Schedule E

The IRS form for reporting supplemental income and loss, including rental real estate — where a Canadian reports a US rental's income and expenses.

W-8ECI

The IRS form a non-US owner gives a US tenant or property manager to stop the default 30% withholding on gross US rent — so the rental is taxed on net income via a 1040-NR instead.

ITIN

A US tax ID the IRS issues to people who must file or be reported to the IRS but can't get an SSN — including non-US landlords who file a 1040-NR or provide a W-8ECI.

Frequently asked questions

When is Form 1040-NR due?

A 1040-NR is generally due April 15 for the prior tax year. If you had no US wages subject to withholding — common for a landlord with only rental income — the due date is June 15.

Do I report US rent on a 1040-NR or a 1040?

A nonresident alien reports US rental income on a 1040-NR (with Schedule E). A US person or resident alien uses the regular Form 1040. Your residency status for US tax purposes determines which return applies.

This definition is general information, not tax advice. See the full guide above and verify current rules with the CRA or IRS. ← Back to the glossary

BorderBird helps cross-border landlords track rent and prepare CRA NR4 and IRS Schedule E filings — see how it works.