New federa lUHT tax and it's implications on farm homes

[mcfarms]

It may have been covered here or your accountant has made you aware , but the new Federal UHT (underused housing tax) will be applicable to you if you are incorporated and you have residences on land owned by the corporation. Failure to file the required form and getting the proper exemption if qualified could have you in line for as much as a 10000.00 fine .
The form is due April 30th so you have some time to contact your accountant if you were unaware of this and want to see if you are affected.

It was designed to target non resident foreign ownership and with the proper filing you are exempt but you have to file.
For more info google is your friend,
Canada UHT tax.

[littledoggie]

2022 Underused Housing Tax (UHT) returns and payments were due on May 1, 2023. However, the Canada Revenue Agency (CRA) will provide relief from penalties and/or interest for late returns and payments provided they are received by the CRA by October 31, 2023.



While the tax itself is generally only intended to apply where residential property is under foreign ownership, the rules require many residential property owners (with few exceptions) to file a separate annual return for each property to claim an exemption from the tax.

The UHT rules are complex, and some uncertainty remains as the CRA and taxpayers continue to navigate these new rules.

https://www.mnp.ca/en/insights/directory/2022/11/09/21/52/underused-housing-tax-act

[fjlip]

Applies to land owned by a partnership with a house on it also.