Owning rental property in the United States brings attractive returns but it also creates IRS reporting duties. Canadian non residents must file NR6 Section 216 and additional forms to keep their rental compliance clean and penalty free.
Why Canadian Landlords Must File in the US
Any rental income earned inside the United States is subject to IRS rules. Even if the amount is small proper filing protects you from withholding issues and prevents future audits when you sell the property.
NR6 and Section 216 Filing Explained
The NR6 submission allows lower withholding when projected rental expenses exceed rental income. Section 216 returns give you the right to report your actual rental profit instead of flat withholding. This method usually reduces your tax bill and improves long term investment outcomes.
Common Mistakes Investors Make
Many Canadian owners forget to file the final annual return after submitting NR6. Others do not claim depreciation or fail to track cross border expenses. These missed deductions raise your tax and create IRS penalties.
How Finnection Protects You
We prepare every filing needed for Canadian landlords. From NR6 to Section 216 to rental statements and CRA reporting we ensure that your income stays accurate on both sides of the border. This protects your property returns and keeps your IRS history clean.
If you have any questions regarding ” Canadian Property”, feel free to contact finnection via email at info@finnection.ca or call us at (647) 795-5462
Disclaimer: Above information is subject to change and represent the views of the author. It is shared for educational purposes only. Readers are advised to use their own judgement and seek specific professional advice before making any decision. Finnection Inc. is not liable for any actions taken by reader based on the information shared in this article. You may consult with us before using this information for any purpose.