I wanted to share with you some pertinent information regarding the Underused Housing Tax in Canada, which might be relevant to some of you.
The Underused Housing Tax, which began on January 1, 2022, imposes a 1% annual tax on the ownership of vacant or under-utilized homes in Canada. While this tax primarily targets foreign national owners, there are specific situations where Canadian owners, including certain partners, trustees, and corporations, might be liable.
Key Points to Consider:
If you fall under the category of an 'affected owner,' it is mandatory to submit an annual return.
Owners of multiple residential properties in Canada must file individual returns for each property.
The good news for 2022: If you submit your return and settle any due amounts by October 31, 2023, penalties and interest will be waived.
The cut-off date for making any elections for the year 2022 is October 31, 2023. These elections can be included in your Underused Housing Tax return.
If you opt to use the fair market value (FMV) of a property for the 2022 calculations, ensure the FMV is determined between January 1, 2022, and April 30, 2023.
For a comprehensive understanding and to determine if this tax applies to you, I encourage you to visit the official website.
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