The IRS considers rental income from U.S. real estate to be taxable to non-residents, which means you must report the income each year, even if you are fully taxed in Canada as well.
As a property owner, you must file a U.S. return to report your rental activity if the property is rented for more than 15 days in a calendar year. This applies whether the property is rented short-term, long-term, or only seasonally. The IRS does not allow this income to go unreported, regardless of your country of residence.
A variety of deductions can help reduce the amount of taxable rental income. Eligible expenses include repairs and maintenance, insurance premiums, mortgage interest paid to your lender, property management fees, advertising costs, utilities you pay on behalf of the tenant, and reasonable travel expenses incurred to maintain or oversee the property. These deductions can significantly lower your net income and, therefore, the U.S. tax you owe.
