Cross Border Tax Planning for Canadians Renting Their U.S. Real Estate
Canada to Arizona was established to provide Canadians a trusted one stop resource to owning U.S. real estate including comprehensive cross border tax planning. We highly recommend speaking to our cross border tax experts prior to renting any property you own in the U.S. to ensure everything is structured correctly and eliminate all surprises.
RENTAL INCOME AND NON-RESIDENT TAX
If you are a Canadian citizen who is receiving rental income from real estate property located in the U.S., you are subject to the non-resident 30% withholding tax. All foreign investors owning U.S property are responsible for paying taxes on any and all rental income they earn in the United States and this mandatory withholding is designed to encourage filing compliance and the payment of income taxes. This amount can be reduced in certain circumstances with the help of our expert cross border tax team.
DEVELOP A TAX STRATEGY
Our team has expertise helping clients alleviate the impact of withholding taxes levied by the IRS at a rate of 30% of gross rental income. This amount can be reduced in certain circumstances. They also assist clients by recommending and implementing ownership structures that preserve foreign tax credits such as in a Cross Border Trust, Cross Border Limited Partnership or Corporate Structure, thereby avoiding double taxation.
DEVELOP A TAX STRATEGY
Our team has expertise helping clients alleviate the impact of withholding taxes levied by the IRS at a rate of 30% of gross rental income. This amount can be reduced in certain circumstances. They also assist clients by recommending and implementing ownership structures that preserve foreign tax credits such as in a Cross Border Trust, Cross Border Limited Partnership or Corporate Structure, thereby avoiding double taxation.
