Prop Hound
Canadians Investing in US Property Checklist
General information only, not tax or legal advice. Cross-border rules depend on your residency, province, and the US state. Confirm every item here with a cross-border accountant and a real estate attorney.
- Found a cross-border tax accountant, one who works both sides, not US-only or Canada-only.
- Asked my accountant to compare buying personally, a US LLC, or a Canadian corp for my situation.
- Asked about US estate tax exposure for non-resident owners before closing.
- Asked my accountant whether to make the net election on my rent and give my property manager a W-8ECI so they stop withholding 30% of gross rent. IRS instructions: https://www.irs.gov/instructions/iw8eci
- Asked my accountant how FIRPTA's withholding on a future sale affects me as a foreign owner. IRS overview: https://www.irs.gov/individuals/international-taxpayers/firpta-withholding
- Confirmed whether I need a US ITIN to file US tax returns on rental income. IRS overview: https://www.irs.gov/individuals/individual-taxpayer-identification-number-itin
- Asked my accountant how the US-Canada tax treaty keeps this income from being taxed twice.
- Confirmed which US state's own rental income tax and filing rules apply, on top of federal.
- Lined up a lender who underwrites foreign national buyers; expect a larger down payment.
- Set up a US-dollar account so I'm not losing money to conversion fees on rent and expenses.
- Confirmed how I'll sign closing documents from Canada: remote notarization, power of attorney, or a trip.
- Lined up a local property manager and a US-based contact who can act for me if I can't be there.
How to use this checklist
Work through it top to bottom for the specific property or market you’re looking at, and don’t mark an item done until you’ve confirmed it yourself or heard it from someone you trust. If an item doesn’t apply, write down why, since the reason is often the thing you want to remember when you compare it against the next property. Keep your answers somewhere you can find them, such as a note per property. It is general information, not tax, legal or financial advice, so check anything high-stakes with a qualified professional. You can also print this page or get the PDF in the First-Time Investor Toolkit.
Longer read: Investing in US rental property as a Canadian: taxes, financing and exchange rate.
More rental investing checklists
- The Market Selection Checklist
- Financing Options Rundown
- Tenant-Friendly vs. Landlord-Friendly States
- The Out-of-State Investing Checklist
- The Deal Analysis Checklist
- The Property Walkthrough Checklist
- The Offer Submission Checklist
- Working With an Inspector
- Buying an Occupied Rental Checklist
- Closing Day Checklist
This checklist covers one step. We check new listings every night.
Prop Hound screens new rental listings in your market against your own numbers, so you only see the ones worth running a checklist like this on.