Chapter 04 · Sale
Schedule D and Form 1040-NR: US Real Estate Capital Gains
How to report US real estate capital gains on Form 1040-NR for Canadian residents.
Direct answer · 60-second summary
The 60-second version
- Form 1040-NR: US nonresidents
- Schedule D: US residents only
- Schedule NEC: nonresident gains
- Real property gains: taxed 30% flat
- Line 14 Part III Form 1040-NR
- No standard deduction nonresident
- Get ITIN before filing
- Filing deadline: June 4, 2026
Acronyms used in this guide
- 1040-NR — Form 1040-NR (nonresident)
- Schedule D — Schedule D (capital gains US)
- Schedule NEC — Schedule NEC (non-connected income)
- IRS — Internal Revenue Service
- FIRPTA — Foreign Investment in Real Property Tax Act
Form 1040-NR: US nonresidents
US nonresidents (including Canadians) file Form 1040-NR, not 1040. Reports US-source income only.
Schedule D vs. Schedule NEC
US residents: Schedule D (capital gains). Nonresidents: Schedule NEC (non-connected income). US real estate gains = Schedule NEC, taxed 30% flat.
Line 14 Part III Form 1040-NR
Report net capital gain line 14 Form 1040-NR Part III. Calculation: sale price − adjusted basis − closing costs.
Filing and deadline
Normal deadline: June 4, 2026 (nonresidents). If withholding paid (FIRPTA), extended to June 15. E-filing available.
Every figure, rate, threshold, and deadline in this guide is drawn from a verifiable primary source listed at the bottom of the page. The article is updated whenever the underlying rules change, with a fresh review date stamped at the top.
Sources and references
Disclaimer
This guide is for educational purpose only.
For concrete decisions, consult a licensed attorney.