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How is Florida Rental Income Treated at Tax Time For Canadians?

How is Florida Rental Income Treated at Tax Time For Canadians?

Canadians buying Florida USA real estate property cannot live there all the time, they usually rent it out, if they lived there, this would make them a US resident and this has a whole bunch of tax implications with very negative consequences   Canadians that travel to the USA and live in their Florida property for a few weeks would not keep their condominium empty the rest of the time – they would rent it out. This is rental income and it is important to know how it would be treated at tax time.

 

Florida Rental Income – US Tax Implications

US rental income would essentially make a Canadian file US taxes each and every year they receive rental income from their Florida home.  If you receive income, you need to pay your taxes.  US rental income from Florida is also subject to a 30% withholding tax. A tax expert can help you in this regard. One option is to complete a US tax return with the option to pay taxes on the net rental income. This essentially allows one to obtain a tax refund on a portion of their withholding tax.  Alternatively, rental income is subject to a 30% withholding tax.  You should speak to your accountant about how to file US tax returns.