A Canadian who owns US property and cannot get a Social Security number gets an ITIN (Individual Taxpayer Identification Number) by filing Form W-7 with original or certified identity documents, usually attached to the front of the first Form 1040-NR; the IRS says to allow 7 weeks, longer in peak season or from overseas.
You need the number before Form W-8ECI is valid, before the IRS will send you a stamped copy of the FIRPTA withholding statement when you sell, and on every 1040-NR. This how-to follows the Instructions for Form W-7 (Rev. December 2024). How the ITIN fits into the rest of your US and Canadian filings is covered in the series pillar, Canadians Who Own a US Rental: The Complete Tax Guide.
Why does a Canadian property owner need an ITIN?
Because several US forms are not complete without a US taxpayer identification number:
- Form W-8ECI. Its instructions say a TIN is "required ... for this form to be valid", so without one the payer keeps withholding 30% of your rent.
- Form 1040-NR. The W-7 instructions list a nonresident alien who must file a US return, or files one to claim a refund or report income, among those who need an ITIN.
- FIRPTA on a sale. Publication 515 says the stamped Copy B of Form 8288-A "will not be provided" to a seller whose TIN is not on the form.
What do you need to apply?
- Form W-7, with reason box b, "Nonresident alien filing a U.S. federal tax return", for an owner filing a 1040-NR.
- Your original tax return for which the ITIN is needed, unless you qualify for an exception (below).
- Identity documents. A valid passport is "the only stand-alone document"; otherwise you need at least two documents from the instructions' list. Documents must be originals or certified copies from the issuing agency, and current.
How do you apply for an ITIN, step by step?
- Prepare the return first. Complete the 1040-NR you need the number for; the W-7 is filed with it.
- Complete Form W-7. Tick "Apply for a new ITIN", tick reason b, and enter your name as it appears on your identity document. Line 3 is your foreign address, the one in Canada where you permanently reside.
- Attach the W-7 to the front of the return with your documents.
- Choose how to submit. By mail to Internal Revenue Service, ITIN Operation, P.O. Box 149342, Austin, TX 78714-9342 (not the 1040-NR address), by private delivery service to the street address in the instructions, or through an Acceptance Agent or a Certifying Acceptance Agent, which the IRS says are available in the US and abroad.
- Wait for the IRS notice. The instructions say to allow 7 weeks, or 9 to 11 weeks if you apply between January 15 and April 30 or from overseas.
Can you get an ITIN without filing a return first?
Sometimes. The W-7 instructions list exceptions where no return is attached:
| Exception | Situation | What you attach instead |
|---|---|---|
| 1(d) | Rental or other passive income subject to third-party withholding, where the withholding agent needs your ITIN | A signed letter or document from the withholding agent on official letterhead |
| 3 | A US home mortgage subject to third-party interest reporting | Documentation showing the mortgage |
| 4 | A disposition of US real property subject to FIRPTA withholding | A completed Form 8288, 8288-A or 8288-B and the sales contract, settlement statement or closing disclosure |
The instructions also caution: "If you're required to file a federal tax return, then you aren't eligible for Exception 1." An owner who is filing a 1040-NR applies with the return under reason b.
What mistakes delay an ITIN?
- Sending photocopies. Only originals or copies certified by the issuing agency are accepted.
- Mailing to the 1040-NR address. The W-7 package goes to the ITIN Operation in Austin.
- Trying to e-file. You cannot e-file a return with the ITIN until the year after it is assigned.
- Letting it lapse. An ITIN not used on a US federal tax return for 3 consecutive tax years expires on December 31 of the third year and must be renewed before it is used again.
- A name that does not match. The instructions warn that a return in a different name than the ITIN record may be delayed.
Keep the ITIN notice with your rental records; our landlord bookkeeping guide and guide to staying audit-ready cover what to file away for each property.
Frequently asked questions
Does each owner need their own ITIN?
Yes. An ITIN is an individual number, and each co-owner who files a 1040-NR or gives a W-8ECI uses their own.
Do I need an ITIN for an extension or estimated tax payment?
No. The W-7 instructions note that an ITIN is not needed for Forms 4868, 1040-ES or 1040-ES (NR).
How do I renew an expired ITIN?
Tick "Renew an existing ITIN" on Form W-7 and submit it with your US federal tax return, by the same methods as a new application.
Does the ITIN affect my Canadian return?
No. Your Canadian return uses your social insurance number. The US rent still goes on your T776.
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