The Underused Housing Tax filing deadline was extended to October 31, 2023. Everyone was worried about the filing requirements in April, and once the deadline was extended, they shelved it until now. Like most CRA filing requirements, the guidelines aren't super clear. If you are worried about filing or have questions, please reach out! While we don't currently provide UHT filing or consultation services, we would be more than happy to refer you to one of our trusted partners. We are in this together!
The UHT was created primarily as a way to counter foreign investment in Canadian real estate, especially to discourage foreign-owned homes that are sitting vacant and not providing much-needed rental or living space in this country. Of course, the CRA cast a wide net and caught a lot of domestic real estate investors as well. The current filing requirements can be found on the CRA website; however, the most common reason a Canadian real estate investor may be required to file is that they either own real estate in a holding corporation or are holding the property as a trustee for another party (think bare trust agreement for a corporation or a joint venture arrangement.) This only applies to residential properties of three (3) units or less.
As the penalties for not filing if you are required to are pretty steep, if you are unsure about whether to file, please ask for help!"
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