If you are a Canadian resident intending to buy a residential property in the United States it is important that you are aware of the following tax implications particularly if you intend to rent it for any period of time during the year.
A non-US resident owning a US residential rental property may elect either of the following options:
OPTION ONE: ELECT TO PAY TAX EQUAL TO 30% OF THE GROSS RENTAL REVENUE
This option makes little economic sense.
Option TWO: Elect TO HAVE RENTAL INCOME TAXED ON A RENTAL PROFIT BASIS
In order to avoid the 30% gross revenue tax on your US property you must file form W8-ECI (Certificate
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