The underused housing tax (UHT) rules, that were introduced in 2022, have already seen many changes and revisions over the past year. The UHT was introduced with the aim to discourage the hoarding and underutilization of residential properties in Canada. Under these rules, property owners may be required to file a UHT return and some may be subject to an additional tax if their residential property remained vacant for a significant part of the year.
Who does this impact?
For 2022: You may be required to file a UHT return if you held residential property - in a corporation, as a member of a partnership, in a Trust, or as a non-resident or temporary resident as of Dec 31, 2022. NOTE: If you are on title of a property as a co-signer for a child, or on land title for estate planning purposes for a parent – you may be considered to be a Bare Trustee and would also be required to file a 2022 UHT return before April 30, 2024.
- For 2023 and future years: Canadian resident corporations, Canadian Partnerships, and Bare Trusts no longer are required to file a UHT return. However, non-resident and temporary resident property owners are still required to file. The filing deadline for 2023 UHT returns is also April 30, 2024.
For more information, or to see if you are impacted, contact your TaxTeam tax professional.
