Underused housing tax return

Generally, this return was only required if you were not a Canadian citizen or permanent resident.

There is one major exception to this rule.  The exception relates to trusts (if the trust does not relate to a deceased individual), it is required to report.  This 

requirement has been corrected for 2023 (as long as all involved in the trust are citizens or permanent residents) but not for 2022.

This includes bare trust agreements (this type of trust can come about by adding the child's name to the property title (for estate planning) or the parent’s name to the property (for financing purposes).

In 2022, returns must be sent before the end of April 2024.  (Same due date as 2023 returns, as it has been extended a few times)  Penalties for late filing are significant, with a minimum of $1000 per person per year.  (Reduction to this level is pending legislation)

A new tax planning addition for individuals looking to save for their first home came into effect in 2023.  Allows savings of up to 8K for the year and unused room rolls forward once an account is opened.

Contributions are deductible, similar to RRSP.  The account's value increase is treated similarly to TFSA (non-taxable).  If used for a home purchase, there is no tax impact for the withdrawal or any repayment requirements.  If not withdrawn for home purchase within 15 years, it can be rolled into RRSP without impact to RRSP room available.

The federal government intends to deny income tax deductions when short-term rental operators are not compliant with the applicable provincial or municipal licensing, permitting, or registration requirements.  These measures would apply to deny all expenses incurred on or after January 1, 2024.  (Bill C-59)

This is in addition to the new provincial rules restricting rental to a principal residence plus one unit on property for municipalities with more than 10,000 residents.  (This portion in effect Oct 26/23)(Short-term Rental Accommodations Act)