Owning rental properties in both Canada and the USA | Desert Sky

There are some tax implications for Canadians who own rental properties in the USA. A google on “owning rental properties in both canada and the usa” brings up a link to this recent article. Owning U.S. property may mean tax implications on both sides of the border. It reports,

Canadians who are not U.S. citizens or green card holders who receive rental income from U.S. property are required to file Form 1040NR. Rental income in the U.S. is subject to a 30 per cent holding tax on the gross rent. You can make a one-time election the first time you file a U.S. return to pay tax only on your profit. The good news is you are allowed a foreign tax credit on your Canadian tax return for any U.S taxes paid on the rental property income or sale of the property.

And,

the Canada Revenue Agency (CRA) wants to know about your property too. If the property is a rental and the cost is more than $100,000, you must file Form T1135Foreign Income Verification Statement with the CRA. This form is not required if you are using the property for personal use only.

Another article that came up with the same google search is Buying US Property: A Tax Guide for Canadians. They suggest

In order to avoid the 30% gross revenue tax on your US property you must file form W8-ECI and provide a copy to the rental manager or person renting your property. The W8-ECI completed by the renter and all tax returns must be filed with the IRS within 16 months of the date the tax return was due.