Due to rising questions about housing affordability over the last few years, the Canadian government is taking measures to increase affordability and penalize those who own an uninhabited home.
With the creation of the Underused Housing Tax (UHT), millions of property owners in Canada must pay a 1% tax on the value of their empty property. If these payments were late, they also incurred penalties (minimum $5,000 or $10,000) for each property.
Who Has to Pay the Underused Housing Tax?
Those who have to pay the Underused Housing Tax include:
- Non-Resident Owners
- Corporate Entities
- Trustees of a Trust
Millions of properties in Canada were impacted by the change, and most owners did not account for the additional tax levied upon them, creating a financial headache for the property owners and the Canadian government.
To assist the affected owners, the Canadian government has extended the deadline for filing the UHT to April 30, 2024.
While the extended deadline provides much-needed breathing room for those owing UHT payments, it’s no time for complacency. Proactiveness is essential in steering clear of unnecessary penalties.
Filing the Underused Housing Tax Return
Filing your Underused Housing Tax return works similarly to other tax returns. The process can be conducted online through the CRA My Account and My Business Account, or you can mail or fax the return to the CRA.
If you prefer personalized assistance, consider our services at Naicker & Associates. We thrive on supporting our clients through each form and deadline, ensuring accuracy and peace of mind.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.
