Renting out US house

[ExpressoEntry]

Hello Everyone,

I am moving out of US to Canada in a couple of weeks as a permanent resident. I was in H1B while in the US. I will be moving to Canada as a PR. I have a home in the US that I am planning on renting out. I heard that in order to avoid paying 30% non-resident taxes I need to file a W-8ECI. Does any one know about this? Do I need to apply for an ITIN or can I use my SSN to file this form? also should I file it this year or next year when I file my taxes?

Thanks for your replies.!

 

[adhiraj123]

I am in a similar boat.

 

[ExpressoEntry]

I am in a similar boat.

So I found out that if you are using a property management company you just need to fill this form and hand it over to them and they will no longer charge the 30 percent tax..when you file taxes next year you need to account for this income in your returns but then you can use deductions like mortgage and property management fees and other expenses on it and effectively round it to zero. Disclaimer: Not a tax professional just what I found out from research.

 

[adhiraj123]

So I found out that if you are using a property management company you just need to fill this form and hand it over to them and they will no longer charge the 30 percent tax..when you file taxes next year you need to account for this income in your returns but then you can use deductions like mortgage and property management fees and other expenses on it and effectively round it to zero. Disclaimer: Not a tax professional just what I found out from research.

Thanks for sharing! I am planning on using a property manager for my place. I will add more details as soon as I speak to them.