La Quinta, CA
(760) 895-3516

Thursday, April 30, 2015

ITIN for Canadians filing Taxes on U.S. Rental Income 15 Days or More

Are you a Canadian citizen who owns a rental property in the United States? Many Canadians are buying U.S. real estate as investments and vacation homes. If you rent those homes out, you will need to report the income to the IRS. In order to report the income to the IRS, you will need to have some form of tax identification number to file your return. There are many things you will need to educate yourself about when it comes to becoming a tax payer in the United States. Here's what you need to know:

All rental income made in the United States is subject to income tax UNLESS it was rented out for less than 15 days of the year. You do NOT have to report rental income if totalling less than 15 days of the year.


If you rent out your U.S. real estate for 15 days or more, you are obligated to file a tax return for the income you have made in the U.S. If you have not entered the U.S. for the purposes of work or receiving a greencard, you will likely have no tax identification number in the U.S.

You can apply for an Individual Taxpayer Identification Number, or ITIN for short, by filing a form W-7 attached to your first income tax return.

Borders Bookkeeping can walk you through filing your first tax return in the United States.

Borders Bookkeeping
(760) 895-3516