Every winter, thousands of Canadians head south, and many decide to buy instead of rent. But US property ownership for Canadian snowbirds involves much more than finding the right vacation home. Buying real estate in the United States means navigating two legal systems and a different set of financial rules.<\/p>\n\n\n\n
None of this is meant to scare you away from buying a home in the US. It just means there’s more to think about than the listing price or the weather. Before making an offer, take a close look at four key areas: how long you can stay in the US, what happens when it’s time to sell, how you should own the property, and what it will actually cost to keep year after year.<\/p>\n\n\n\n
One of the biggest surprises for Canadian snowbirds is that the IRS doesn’t use the same rules as US border officials.<\/p>\n\n\n\n
While Canadians can stay in the US as visitors for up to 182 days<\/a> within a rolling 12-month period without a visa, the IRS uses the Substantial Presence Test<\/a> (SPT) to determine tax residency. The test looks at three years of travel by counting every day spent in the US during the current year, one-third of the days from the previous year, and one-sixth of the days from two years earlier.<\/p>\n\n\n\n If you’re in the US for at least 31 days during the current year and your weighted total reaches 183 days, you may be considered a US tax resident. Since arrival and departure days both count, it’s easy to underestimate how quickly those days add up. For example, spending 120 days a year in the US keeps you just below the threshold, while staying 122 days a year pushes you over it.<\/p>\n\n\n\n Crossing the 183-day weighted threshold doesn’t automatically mean you’ll owe US tax on your worldwide income.<\/p>\n\n\n\n If you’ve spent fewer than 183 actual days in the US during the current year, you can usually file IRS Form 8840 to claim the Closer Connection Exception<\/a>. The goal is to show that your life is still based in Canada. The IRS looks at things like where your home is, where your family lives, where you bank, where you’re licensed to drive, and where you receive healthcare. Just don’t miss the filing deadline. Form 8840 is generally due by June 15<\/a> of the following year, and filing late can cost you the exception.<\/p>\n\n\n\n If you’ve spent 183 days or more in the US during the current year, that option disappears. Instead, you’ll need to rely on the Canada-US tax treaty by filing Form 1040-NR and Form 8833.<\/p>\n\n\n\n Some Canadian snowbirds are hoping for a rule change, but for now, nothing has changed. The Canadian Snowbird Act (H.R. 3070)<\/a>, a bipartisan bill introduced in the US House in 2025, would allow qualifying Canadians aged 50 and older who own or lease US property to stay for up to 240 days a year without a visa instead of the current 182-day limit. However, as of mid-2026, the bill remains in committee and has not become law.<\/p>\n\n\n\n If you open a US bank account to pay for property expenses, be sure to complete Form W-8BEN<\/a>. Without it, US banks are required to withhold 30% of the interest your account earns. Once submitted, the form is typically valid for three calendar years before it needs to be renewed.<\/p>\n\n\n\n Buying a US property is often the straightforward part. Selling it can be much more complicated. If you’re a non-resident, the Foreign Investment in Real Property Tax Act<\/a> (FIRPTA) requires the buyer to withhold a portion of the sale proceeds and send it to the IRS.<\/p>\n\n\n\n Under FIRPTA, the buyer is legally required to withhold a percentage of your gross sale price and remit it to the IRS within 20 days of closing. <\/p>\n\n\nThe Relief Forms<\/h3>\n\n\n\n
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A Pending Change Worth Watching<\/h3>\n\n\n\n
One More Form for Your Bank Account <\/h3>\n\n\n\n
2. What Happens When You Sell (FIRPTA)<\/h2>\n\n\n\n