The potential consequences of the Federal Underused Housing Tax
The Federal Underused Housing Tax (“UHT”) came into effect on the 1st of January 2022. The UHT imposes a 1% tax on vacant or underused properties situated in Canada. The policy goal of this legislation is to address the housing crisis with the focus upon properties held by non-Canadians.
Pitfalls of joint property ownership with an adult child
We often see a parent creating joint ownership with an adult child on title of their property in an attempt to avoid the Estate Administration Tax (“EAT”). This could be the worst mistake for your estate plan! Not only it may not avoid EAT, it could end up costing you and your adult child a lot more than 1.5% of potential savings.
5 Tax considerations when buying, selling or changing the use of your home
Did you know that you may have to pay income tax and deal with additional CRA reporting even if you do not sell your home? You should review possible implications with your legal and tax professionals before not only buying or selling a property, but especially if you are considering renting or transferring it to a family member.
5 Mistakes to avoid when buying or selling a residential property
The family home is the biggest financial investment for most people. Timing and structuring of the transaction are often driven by personal preferences rather than the understanding of certain intricacies surrounding the entire process. We closed hundreds of real estate transactions for our clients. Some transactions, however, do not