ITIN: The Tax ID Foreign Owners of US Rental Property Use

An Individual Taxpayer Identification Number is a nine-digit number the IRS issues to people who have to file US taxes but aren't eligible for a Social Security Number. It's the number a Canadian or other non-resident owner uses on their US tax return.

When a rental owner needs one

If you own US rental property as a non-resident, you generally file a US return (Form 1040-NR) to report the rent. That return needs a taxpayer ID. Without an ITIN, you can't file it, and without it you can't claim deductions against the rent or collect a refund of withheld tax.

You'll also need one at sale, so the withheld FIRPTA tax gets credited to you and you can claim a refund of any excess.

How to apply

You apply with Form W-7, along with proof of identity, usually a valid passport. The application is normally filed together with a tax return, though there are exceptions, including applying alongside a FIRPTA withholding certificate request when you sell. You can also use an IRS-approved certifying acceptance agent, who can verify your passport so you don't have to mail the original.

The IRS says seven weeks, or nine to eleven weeks if you apply in peak season (January 15 to April 30) or from outside the US. Start before you close, since a valid W-8ECI needs the number.

Whether the loan needs one

Not always. Some lenders for foreign nationals require one, and many don't. See how foreign national loans work. Your property manager may also ask for a form such as the W-8ECI so they stop withholding 30% of your rent.

What it isn't

An ITIN is only a tax filing number. It gives you no work permit and no US credit file.

Related reading

The Canadian investor guide shows where the ITIN fits among the other filings, and the checklist has the item on it. For anything specific to your situation, ask a cross-border accountant. The IRS also has an overview on its ITIN page.