Underused housing tax (UHT) information and resources

Underused housing tax (UHT) information and resources

As you may be aware, the Government of Canada has introduced the Underused Housing Tax (UHT). This new tax may have inadvertently created a filing requirement for you. If you hold residential real estate through a corporation, a trust or a partnership, or if you are a non-resident, you may be required to file the UHT-2900 Underused Housing Tax Return and Election Form. Canadian residents normally qualify for an exemption from the tax but your exemption may only be allowed if you file and claim it. Penalties for non-compliance are a minimum of $5,000 for individuals and $10,000 for corporations.

If you would like us to review filing requirements and/or exemptions for specific properties, please list the addresses or descriptions of any Canadian, residential property (including condos) where legal title is held by yourself, other members of your household or any corporations/partnerships/trusts you hold an interest in.  Please do not include any of the following exceptions:

  1. Your principal residence
  2. Buildings with 4 or more rental units on a single title
  3. Buildings with more than 50% commercial use
  4. Rental properties under sole ownership (note: spouses with joint ownership of a rental may require a filing if CRA concludes that they hold the property as a partnership)

If you have any questions or would like to discuss any specific situations, please don’t hesitate to contact our office.  If you would like to prepare the required forms yourself, we have provided a link to the return below and background information from RSM Canada as well as Canada Revenue Agency.

UHT Form

RSM Canada: https://rsmcanada.com/insights/tax-alerts/2021/finance-unveils-details-of-tax-on-non-resident-property-owners.html

Canada Revenue Agency: https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html