Search results
Mar 19, 2024 · The capital gains exemption is calculated like this: Principal Residence for 5 out of 10 years = 50% exemption. Exempt Capital Gain = 50% of $200,000 = $100,000. Taxable Capital Gain = $200,000 – $100,000 = $100,000. So, in this case, half of your brother’s capital gain ($100,000) is exempt from tax, and the other half ($100,000) is subject ...
You may be exempt from paying the tax if the property is: A vacation property located in an eligible area of Canada and used by you or your spouse or common-law partner for at least 28 days in the calendar year. Determine if your residential property is located in an eligible area of Canada for the purposes of this exemption by using the ...
- Overview
- Table of Contents
- The underused housing tax
- Exemption for new residential properties
- Exemption for new residential properties held as inventory
- Keeping records
- Further information
Underused Housing Tax Notice UHTN13
February 2023
The purpose of this notice is to help you determine if your ownership of a residential property qualifies for the exemption for residential properties that are newly constructed, including ones that are held as inventory.
Except as otherwise noted, all statutory references in this publication are to the provisions of the Underused Housing Tax Act (UHTA) and its regulations. The information in this publication does not replace the law found in the UHTA and its regulations.
•Overview
•The underused housing tax
•Exemption for new residential properties
•What is substantial completion
•Exemption for new residential properties held as inventory
•Keeping records
If you are an affected owner of a residential property on December 31 of a calendar year, you have to pay the underused housing tax for the residential property for the calendar year, unless your ownership of the residential property is exempt from the tax for the calendar year.
Where certain conditions are met, your ownership of a residential property may be exempt from the underused housing tax if the property is any of the following:
•a vacation property that is located in an eligible area of Canada
•used as a primary place of residence or for qualifying occupancy
•not suitable for year-round use
•seasonally inaccessible
If you are an affected owner of a residential property on December 31 of a calendar year, your ownership of the residential property is exempt from the underused housing tax for the calendar year if construction of the residential property is not substantially completed on or before March 31 of the calendar year.
If you are an affected owner of a residential property on December 31 of a calendar year, your ownership of the residential property is exempt from the underused housing tax for the calendar year if all of the following conditions are met:
•construction of the residential property is substantially completed in January, February or March of the calendar year
•the residential property is offered for sale to the public in the calendar year
•the residential property has never been occupied by an individual as a place of residence or lodging in the calendar year
Every affected owner of a residential property must keep records to enable the determination of their obligations and liabilities under the UHTA. Generally, you must keep the records for six years from the end of the year to which they relate.
If you do not have adequate records to support that your ownership of a residential property is exempt from the underused housing tax for a calendar year, the CRA may disallow your exemption.
For all technical publications related to the UHTA, go to Underused housing tax technical information.
For general enquiries about the underused housing tax, call the applicable telephone number:
Dec 20, 2023 · The homestead exemption is designed to provide property tax relief to residents who use their property as their primary residence. This exemption works by reducing the property’s assessed value, which in turn, lowers the tax responsibility for the homeowner. Because it is tied to the principal residence, it does not apply to rental or ...
Jun 25, 2024 · The homestead exemption provides an exemption from property taxes on a primary residence and protects the value from creditors, and circumstances that arise from the death of the homeowner’s spouse.
- Julia Kagan
Dec 19, 2023 · A homestead tax exemption shelters either a dollar amount or percentage of the home value in the calculation of the homeowner's property tax bill.
People also ask
Can a homestead exemption save you money?
What is a homestead exemption?
How does homestead exemption affect property taxes?
What is a homestead tax?
How do I qualify for a homestead exemption?
Can a homestead exemption be claimed for another property?
Here’s how a homestead exemption can translate to savings. A homestead valued at $400,000, taxed at 1%, is eligible for an exemption of $50,000. The property's taxable value will be $350,000, and the tax bill $3,500. Without the exemption, the property tax bill would be $4,000. The difference is only $500, but over a decade, that $5,000 could ...
