Canadian with US rental income - questions on 1040NR

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tchains
Posts: 14
Joined: Mon May 07, 2018 4:58 pm

Canadian with US rental income - questions on 1040NR

Post by tchains »

Hi there, this is my first time filing as a relocated Canadian tax resident. I have a US rental property which generated a small amount of income after all expenses and depreciation which is detailed in the Schedule E. I received a 1099 from the property management company though I believe they should have sent me a 1042S. I did file a W-8ECI already with them. On my 1040NR, the software I'm using (TaxAct) is asking which treaty article I'm using for income exemption. I would assume I would select Article VI (Personal income) but unfortunately the only choices are VII, XIX, XV, XVI, XX. Which one applies in this case? Also, the exempt income simply the net rental income? I have no other US sources of income.
nelsona
Posts: 18312
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The income is NOT exempt from US taxes, since it is from US real property.

Report the income and expenses as usual, and use the tax paid in US and state towards your Cdn tax liability on that income.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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