So what if I want to rent my property and I’m Canadian? Do I need to pay tax on rental income generated from my Florida property?
I wish the answer was no…but there is no dodging the IRS on this one! You will be taxed on income earned on your property. Now I’m no accountant or attorney so don’t take this as free legal advice. Speak to a professional in that field for complete verification. Canadian homeowners who rent out their homes will have a withholding tax of 30% which will apply towards the gross rent collected. One way to avoid this would be to file a U.S. tax return and pay the tax on net rental income collected. Then you can be refunded for the withheld tax amount. Again, you should contact your tax representative or attorney to get clarification.