Underused Housing Tax Resources
The underused housing tax or “UHT” is a 1% tax on foreign-owned residential properties. Though the tax is aimed at foreigners, many Canadians may also be caught. Learn about your filing and tax strategies here.
Latest UHT Articles
Trustees: Don’t Fall into the Underused Housing Tax Trap!
Trustees of trusts with residential property in Canada must file an Underused Housing Tax (UHT) return and may be exposed to a minimum of $5,000 per year for non-compliance. The penalty applies to each trustee and may pose further issues if the trust lacks liquidity.
Trustees: Don’t Fall into the Underused Housing Tax Trap!
Trustees of trusts with residential property in Canada must file an Underused Housing Tax (UHT) return and may be exposed to a minimum of $5,000 per year for non-compliance. The penalty applies to each trustee and may pose further issues if the trust lacks liquidity.
The New Underused Housing Tax Return Applicable to all Corporations owning Canadian Real-Estate
The UHT generally applies to non-Canadians and corporations with non-Canadian owners. However, it is important to note that even if your corporation is 100% owned by Canadians, it may still be required to file the UHT Tax Return if it owns residential real estate in Canada.
How to Prepare the Underused Housing Tax Return
Check out our step-by-step guide guide on how to prepare the UHT return along with detailed explanations.
Foreign Airbnb Owners Face New Underused Housing Tax in Canada
Foreign owners of Airbnb properties may face the new Underused Housing Tax (UHT), a new tax introduced in 2022, which targets foreign real estate owners who do not reside in or rent out their properties. In this article, we highlight how the tax may still apply, even if the property is not considered “underused.” Property owners should file their UHT tax return by May 1, 2023, to avoid penalties of $5,000 to $10,000.
Other UHT Resources
Check out the latest guides and resources from CRA and others in the tax community to help you stay ahead of the Underused Housing Tax:
FAQs
The Underused Housing Tax (“UHT”) is a national, annual 1% on the value of non-resident, non-Canadian-owned residential real estate that is underused. It came into effect on January 1, 2022.
Although the tax is meant to apply to non-residents and non-Canadians, some Canadians – such as Canadian private corporations owning residential properties – may still need to file a tax return, even though they may not have any taxes to pay. We go over this in more detail below.
Yes, there are significant penalties for not filing on time. The minimum penalty is $5,000 for individuals and $10,000 for corporations. So it is important to make sure to file a UHT return on time, even if you do not have to pay the UHT tax.
A UHT return needs to be completed for each calendar year. The deadline to file is April 30th of the following year. If April 30th falls on a weekend, it will be the next business day. For 2022, the deadline to file is May 1, 2023.
