|Under-Used Housing – a tax on unoccupied or under used housing based on 1% of the ownership’s value of the property Who must file – If you are not a Canadian citizen or permanent resident, you must file an under used housing return for each residential property that you owned on December 31 of that tax year. If you own Canadian residential properties in a foreign corporation, you must file a return for each property that the corporation owned on December 31 of that tax year. If you are a partner in a partnership that owns Canadian residential properties (and the sole purpose of the partnership is not to own the property), you must file a return for each property that the partnership owned on December 31 of that tax year.
If your addition to the partnership is a residential property, then you will have to file a return for that property. If you have a Canadian corporation, that has either 10% or more of its directors, or share ownership, belonging to foreign individuals or entities, it must file a return for each property that it owned on December 31 of that tax year. If you have a Canadian Corporation, that is privately owned and controlled, and owns residential properties, it must file a return for each property on December 31 of that tax year. The penalties for not filing or not filing on time start at $5,000, per year per property. What we need to file your return: For each property – Legal address Type of property (detached house, duplex, etc) Ownership type (Tenancy in common, joint tenancy, or sole) Legal Property ID from land titles Property Tax Roll ID Purchase price Year of purchase Percentage of ownership List of all other owners Assessed value of the property (current year from property tax assessment) Total number of residential properties owned in Canada? Relationship (if any) of tenants to owner If the property was rented during the calendar year, for what periods (please provide dates) Even though you have to file a return, you may be exempt from taxation. If the property has been rented (in month long periods) for 180 days or more during the calendar year, you are exempt from paying this tax, but still must file a return.
If you or your spouse occupied the property for 28 total days during the calendar year you are exempt from paying this tax, but still must file a return. If the property is inhabited by your spouse, common-law partner, parent, or child during the calendar year, you are exempt from paying this tax, but still must file a return. If the property is seasonally unavailable (I.e., no access, or not suitable for the elements) the property is exempt from paying this tax, but still must file a return. Please note that if your property is owned through a Canadian corporation with foreign control or ownership, or the property itself has foreign ownership, and it is rented out by the day or week (I.e., Airbnb, VRBO) the property WILL be subject to UHT tax.
Links to CRA site & Bulletins: https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html#1 https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/uhtn4/exemptions-specified-canadian-partnerships-trusts-corporations.html For us to file this return on time, please have all your information to us by the 30th of September.
We’re Happy to help. This under-used housing tax is complex, and they have already had to revise the guidelines. Please reach out to us if you have questions. The penalties are steep, so we want you all to err on the side of caution.
One last thing.This is Miss Delta Dawn- she had a birthday in May, and she is 1! She is by far our friendliest staff member, and if you stop by she may just bring you her favorite toy of the moment.
We moved into our new space! Come see us at #9 2611 37 Ave NE.
This link will take you to google maps 🙂