Underused Housing Tax – in effect as of December 31st, 2022 – What you need to know
A new tax has hit the streets and the pocketbooks of Canadians, and it goes by the name of UHT – Underused Housing Tax.
If you own an investment property that is registered with land titles as partnership, corporation, or trust, then you must file a UHT return by the end of this month, April 30, 2023. If you own multiple properties, then you must file a return for each property owned.
Failure to file a return could land you in hot water with a minimum fine of $5,000 for failure to file for affected persons.
Below is a review of the basic rules for this tax:
Who Does this Tax Apply to?
The tax applies to you if you are an affected owner, meaning:
An affected owner includes, but is not limited to:
- An individual who is not a Canadian citizen or permanent resident
- an individual who is a Canadian citizen or permanent resident and who owns a residential property as a trustee of a trust (other than as a personal representative of a deceased individual)
- any person – including an individual who is a Canadian citizen or permanent resident – that owns a residential property as a partner of a partnership
- a corporation that is incorporated outside Canada
- a Canadian corporation whose shares are not listed on a Canadian stock exchange designated for Canadian income tax purposes
- a Canadian corporation without share capital
An excluded owner includes, but is not limited to:
- an individual who is a Canadian citizen or permanent resident – unless included in the list of affected owners below
- any person – including an individual who is a Canadian citizen or permanent resident – that owns a residential property as a trustee of a mutual fund trust, real estate investment trust, or specified investment flow-through trust (SIFT) for Canadian income tax purposes
- a Canadian corporation whose shares are listed on a Canadian stock exchange designated for Canadian income tax purposes
- a registered charity for Canadian income tax purposes
- a cooperative housing corporation for Canadian GST/HST purposes
- an Indigenous governing body or a corporation wholly owned by an Indigenous governing body
How Much is the Tax?
The tax is the greater of; 1% of the property’s tax assessed or the property’s recent sale price.
Looking to create your investment strategy? I can help with that.
If you are looking to buy or sell, I can help. Get in touch today! Looking for a one-of-a-kind place to call home?
Want reasonable terms on your purchase agreement?
Want expert guidance on the home purchase process?
Get in touch today and let me help you find just the right place.
Click on the link or me at 604-376-3350 to get the process started.
https://lizpenner.com
Liz PennerREALTOR
ABOUT LIZ PENNER | YOUR BEST LANGLEY REAL ESTATE AGENT
Liz Penner is a top-selling licensed real estate salesperson with the Fraser
Valley Real Estate Board and has been a top-selling realtor specializing in the residential resale of condos, townhomes, and houses for over a decade. Liz assists residents of the Langley and Surrey areas to sell real estate while looking out for the client’s best interests. Liz also helps first-time homebuyers, families, and repeat purchasers with their property search process, ensuring that her clients get access to the very best homes on the market while receiving excellent service ensuring that they find the perfect place to call home.
Liz holds a BBA in leadership and has completed a variety of specific training through the Fraser Valley Real Estate Board in the areas of selling strata properties, foreclosures, estate sales, and new construction properties. Liz is also well versed in POAs, the Strata Property Act, and more.
If you are looking for a knowledgeable and professional real estate agent that is willing to do everything possible to ensure that you get top dollar for the sale of your home or to find the dream home you are looking for in the Surrey and Langley, BC areas then get in contact today.
WHY LIST YOUR HOME FOR SALE WITH LIZ PENNER
- I’ve helped sell over 400 properties throughout the Langley and Cloverdale area, and I’d love the opportunity to do the same for you.
- I’ve experienced straightforward sales and sales that have gone off the rails, back on the rails, off the rails, and then back on again. That’s just the way the real estate train rolls, and it never rattles me.
- I’ve got a solid toolkit to pull from when a problem arises. I take my job seriously each time, and I will make sure you get top dollar for your Fraser Valley, Langley, or Cloverdale home, smooth sailing, or otherwise.
