183 Day Rule: What It Means and How It Affects Property Owners

When you own property in the U.S. but live elsewhere, the 183 day rule, a threshold used by the IRS to determine tax residency for foreign individuals. Also known as the substantial presence test, it decides whether you’re treated as a U.S. resident for tax purposes—no matter where you call home. If you spend more than 183 days in the U.S. within a rolling three-year window, you could be taxed on your global income, not just your rental earnings. This isn’t just about vacations—it’s about how long you’re physically present in the country, even if you’re managing your own property.

The non-resident landlord, a person who owns rental property in the U.S. but lives outside the country. Also known as foreign property owner, it must comply with specific IRS reporting rules if they hit the 183-day mark. Many assume that owning a home or renting it out doesn’t make them a U.S. tax resident. But the IRS doesn’t care about your passport—it cares about your calendar. If you’re in the U.S. for 31 days or more in the current year, and the total days over three years meet the formula (31 + 183 days calculated with weighted past years), you’re in the system. That means you may need to file Form 1040-NR, pay taxes on rental income, and possibly deal with withholding by your property manager.

This rule doesn’t just apply to individuals. It affects how companies structure deals, how investors plan their stays, and even how long you can stay in your own vacation home without triggering tax consequences. People often think they’re safe if they don’t earn income in the U.S., but the rule is based on presence, not profit. A landlord who spends 150 days in Florida managing rentals, 40 days in Texas checking on a second property, and 20 days in California for repairs? That’s 210 days—over the limit. No one told them. No one warned them. And now they’re facing penalties or back taxes.

What’s worse? Many foreign owners don’t realize that the 183 day rule can lock them into U.S. tax obligations for years—even if they leave. Once you’re classified as a resident, you might need to file as one for the entire year, even if you moved out in July. And if you’re not filing at all? Your bank accounts could be flagged, your property sales delayed, or your future visas denied. This isn’t a gray area—it’s a hard line drawn by the IRS.

So if you own property in the U.S. and spend time here—even if it’s just to fix a leaky roof or collect rent—pay attention. Track your days. Know your limits. Understand what happens if you cross them. The posts below break down real cases: how landlords missed the rule, how they got caught, and how they fixed it. You’ll see what documents you need, what forms to file, and how to avoid the most common mistakes. This isn’t theory. It’s what’s happening right now to people just like you.