Underused Housing Tax (UHT) For Residential Properties
Whistler Accountants interpreted The Government of Canada’s (GOC) Underused Housing Tax Act (UHT) and noted that clarity was required regarding rental and business income properties. This tax pertains to some residents and all non-residents of Canada. For residents, it comes down to who is on the title for the property. See the link above for all the restrictions. Note: the author of this blog is a realtor, not an accountant. It is important to read the UHT government page and talk with your accountant.
The UHT Act affects non-resident owners. The GOC site refers to an annual 1% tax on the ownership of vacant or underused residential housing. Meaning that the non-resident owner (or their spouse, or common law partner) of a property used as a residence has to make use of the property for more than 28 days to be exempt from the UHT. One would hope that anyone owning a home in Whistler is enjoying the mountains and nature more than 28 days a year.
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Is there Tax on Furniture Included in the Sale?
When buying a property in Whistler and furniture is included, Provincial Sales Tax (PST) is applicable. This 7% PST is charged on used furniture and has to be accounted for. This tax will be of most concern to the buyer who is financing the purchase as the mortgage company will not finance furniture.
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Is G.S.T. payable on Whistler Real Estate?
Another topic that generates a lot of buyer FAQ Whistler real estate questions is the one on the Goods and Services Tax (GST). Please note, this is a huge topic and one which cannot and should not be explained fully on any realtor’s website. Realtors have basic knowledge, but they are duty-bound to recommend you take professional advice from an accountant or lawyer. Realtors are not GST experts. In the meantime, the following information has been taken from local lawyers, Race and Company’s website.
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What is Property Transfer Tax?
Property Transfer Tax (PTT) is charged at the time of closing and the transfer of title from the seller to the buyer. Financial institutions will not include PTT as part of your mortgage.
You are charged property transfer tax when you make changes to a property’s title, including but not limited to:
- acquiring a registered interest in the property
- gaining an additional registered interest in the property
- becoming the registered holder of a lease, life estate, or right to purchase for the property
The property transfer tax rate is:
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