Investing in US Real Estate From Canada
US rental houses cost a fraction of what a house costs in Toronto or Vancouver, and plenty of them cash flow. Buying one from Canada adds a second tax system, a lender who isn’t your usual bank and a currency exchange. The guides below take it one step at a time.
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The overview and the order to do things in.
How Canadians buy US rental property: FIRPTA, ITIN, the Canada-US tax treaty, financing as a non-resident and what CAD/USD does to your numbers.
Step by step for Canadians buying US rental property: budget, accountant, market, lender, offer, inspection, closing and what to set up after.
Taxes
What the IRS and the CRA each want, from the first rent check to the sale.
How Canadians are taxed on US rental income: the 30% withholding, the net election and W-8ECI, Form 1040-NR, ITIN, and T776, T2209 and T1135.
Selling US rental property as a Canadian: FIRPTA withholding, the withholding certificate, US and Canadian capital gains tax and recapture.
Financing and money
Who will lend to you, and how to move the money without losing a chunk to fees.
Yes, but the options are narrower. How foreign national DSCR loans work for Canadian buyers, what lenders ask for, typical down payments and a worked example.
How Canadians fund a US rental: a Canadian HELOC, why RRSP and TFSA don't work, proving source of funds, and cutting currency exchange costs.
How foreign national mortgages work for non-US residents: who qualifies, down payment and reserves, documents, and how they differ from ITIN loans.
Structure and location
How to own it, and where.
Hold US rental property personally, in a US LLC or through a Canadian corporation: the LLC tax mismatch, estate tax, liability and lenders.
Which US states Canadians buy rentals in, and what to check in each: state tax filing, property tax, landlord rules, insurance and flight access.
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