2022-Apr-27
Underused Housing Tax Rules for US and Overseas Cottage Owners
The federal government has proposed the new Underused Housing Tax (UHT) which will be assessed/payable in 2023. The intention of the tax is to make housing more affordable for Canadian residents by deterring non-residents from passively investing in Canadian real estate.
Most Georgian Bay cottages owned by non-Canadians are water access only and/or not winterized and are therefore expected not to be subject to this new tax under this exemption: “The property is not suitable for year-round use as a place of residence”. The Bill has not yet been enacted, but you can view the text in Part 2 of Bill C-8 here and find summary information here.
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