You might think flipping a property in under a year is no big deal — but CRA sees it differently. Since January 1, 2023, there's been a federal rule in place: if you sell a residential property within 365 days of buying it, the Canada Revenue Agency (CRA) will automatically treat the profit as business income — not a capital gain. That means: You pay tax on the full profit at your marginal rate You can’t use the principal residence exemption to shelter... [read more]

New this tax season is the Underused Housing Tax (UHT). This is a Federal Canada wide new tax and declaration form. It came into effect on January 1, 2022. But more information has now been provided by Canada Revenue Agency and the form is now available. What is it; This is a 1% annual tax on the greater of the assessed value or FMV of non-resident, non-Canadian owned residential real estate that's considered to be vacant or underused. Why it’s important; Unless you are an... [read more]