Canada Property & Housing Guides
12 guides on Property tax, principal residence, rental property, home buying, and renovations.
Canada First-Time Home Buyer Guide (Programs, Land Transfer Tax Rebate, HBP, FHSA, Incentives)
the first-time home buyer programs in Canada — the Home Buyers' Plan (HBP, up to $60,000 RRSP withdrawal), the First Home Savings Account (FHSA, up to $60,000 tax-free withdrawal), the First-Time Home Buyer Incentive (the shared-equity mortgage, the program is currently paused), the Land Transfer Tax rebates (Ontario up to $4,000, BC up to $8,000, Toronto up to $4,000), the GST/HST New Housing Rebate (up to $6,300 on the new construction), the mortgage stress test (the 5.25% qualifying rate), the CMHC mortgage insurance, the minimum down payment (5% on the first $500,000, 10% on $500,000-$1 million, 20% on $1 million+), the 'first-time home buyer' definition, and the provincial first-time home buyer programs.
Canada GST/HST New Housing Rebate Guide (New Construction, Rental Property, Assignment Sales)
the GST/HST New Housing Rebate in Canada — the 36% GST rebate (up to $6,300) on the new construction homes priced up to $350,000, the phase-out for the homes between $350,000 and $450,000, the BC and Ontario provincial new housing rebates (the BC rebate up to $52,500 on the HST portion, the Ontario rebate up to $24,000), the GST/HST New Residential Rental Property Rebate for the landlords, the assignment sale and the GST/HST, the 'substantial renovation' definition, the condominium assignment and the HST, and the application process (the Form GST190, the Form GST191).
Canada Home Office Expenses Guide (Employee vs Self-Employed, T777, Simplified Method)
the home office expenses in Canada — the employee home office deduction (the T777 form, the T2200 or T2200S form from the employer), the self-employed home office deduction (the proportional business use, the workspace-in-the-home deduction), the simplified method ($5 per day for the home office, up to $500 per year), the detailed method (the mortgage interest, the rent, the utilities, the insurance, the property taxes), the 50%+ business use test, the home office as the 'principal place of business', the eligibility for the temporary work-from-home (the COVID-19 rules), and the CRA home office audit.
Canada Home Renovation Tax Credits Guide (MHRTC, HATC, Green Home Grants, Energy Efficiency Rebates)
the home renovation tax credits and the grants in Canada — the Multigenerational Home Renovation Tax Credit (the 'MHRTC' — the 'up to $7,500 refundable credit' — the 'eligible renovation for the secondary unit for the senior or the adult with the disability'), the Home Accessibility Tax Credit (the 'HATC' — the 'up to $20,000 in the qualifying expenses' — the '15% non-refundable credit' — the 'senior and the disability renovations'), the Canada Greener Homes Grant (the 'up to $5,600 for the energy efficiency improvements' — the 'heat pumps, the insulation, the windows, the doors'), the provincial home renovation programs (the 'Ontario renovation tax credit for the seniors' — the 'BC Home Renovation Rebate' — the 'Quebec Rénoclimat'), the GST/HST new housing rebate (the 'new home purchase' — the 'substantial renovation'), and the rental property renovation expenses (the 'capital vs current expenses' — the 'CCA claim on the rental property improvements').
Canada Non-Resident Speculation Tax Guide (NRST, Ontario, Foreign Buyer Ban, BC Foreign Buyer Tax)
the non-resident speculation taxes in Canada — the Ontario Non-Resident Speculation Tax (NRST) at 25% on the residential property purchased by the non-residents and the foreign corporations in the Greater Golden Horseshoe region, the NRST exemptions (the nominees, the Ontario Immigration Nominee Program, the protected persons), the NRST refund (the 4-year refund for the nominees who become the permanent residents or the Canadian citizens), the BC Foreign Buyer Tax (the \u201CAdditional Property Transfer Tax\u201D at 20% on the residential property purchased by the foreign nationals and the foreign corporations in BC), the BC foreign buyer tax exemptions (the work permits, the study permits, the refugee claimants), and the federal foreign home buyer ban (the \u201CProhibition on the Purchase of the Residential Property by the Non-Canadians Act\u201D — the 2-year ban effective January 1, 2023, extended to 2025).
Canada Pre-Construction Home Tax Guide (Assignment Sales, HST on Pre-Construction, GST/HST Rebate)
the pre-construction home taxation in Canada — the HST on the pre-construction condos (the new construction HST at 13% in Ontario), the GST/HST New Housing Rebate for the pre-construction purchases, the assignment sale rules (the assignment of the pre-construction contract), the HST on the assignment profit (the 13% HST on the assignment commission), the \u201Cflipping\u201D rules and the 100% taxation of the pre-construction profits, the pre-construction home buyer protections (the Tarion warranty in Ontario), the delayed closing and the assignment fees, and the tax implications of the \u201CHST-included\u201D pricing.
Canada Principal Residence Exemption Guide (PRE, Home Sale Tax-Free, Change of Use)
the Principal Residence Exemption (PRE) in Canada — the full exemption from the capital gains tax on the sale of the primary home, the 'ordinarily inhabited' requirement, the 0.5-hectare land limit, the principal residence designation (the Form T2091), the change of use rules (the s. 45(2) and s. 45(3) elections), the 4+ year rental period (the change of use deferral), the land and the excess land (the 'superficies'), the multiple properties and the '90%+' test, the trust ownership of the principal residence, and the reporting requirement for the pre-2016 years.
Canada Property Flipping Tax Guide (Business Income vs Capital Gain, GST/HST on Flipped Properties, Flipping Rules)
the property flipping tax rules in Canada — the flipping as the business income (the 'CRA considers the flipping as the business activity' — the '100% taxable as the income — NOT the capital gain'), the principal residence exemption and the flipping (the 'denied if the property is flipped quickly' — the 'CRA anti-flipping rules'), the GST/HST on the flipped properties (the 'GST/HST applies to the substantially renovated properties' — the 'new housing rebate may NOT apply'), the 1-year flipping rule (the 'CRA's administrative policy: the property sold within 365 days of the purchase is the flipped property'), the flipping indicators (the 'intention at the purchase', the 'frequency of the transactions', the 'nature of the renovation', the 'marketing efforts'), the property flipping in the Toronto and the Vancouver markets (the 'hot markets and the flipping scrutiny'), and the reporting the flipping income (the 'form T2125 — the Statement of Business or Professional Activities').
Canada Property Tax Guide (Land Transfer Tax, Property Assessment, Vacant Home Tax, Non-Resident Speculation Tax)
the property taxes in Canada — the municipal property tax (the annual tax based on the MPAC assessment), the land transfer tax (LTT) in the Ontario and BC and Quebec (the \u201Cproperty transfer tax\u201D), the Ontario land transfer tax at up to 7.5% on the residential property ($0-$55,000: 0.5%, $55,000-$250,000: 1%, $250,000-$400,000: 1.5%, $400,000-$2 million: 2%, over $2 million: 2.5%), the Toronto Municipal Land Transfer Tax (MLTT — the additional tax in the City of Toronto), the BC Property Transfer Tax (PTT at 1% on the first $200,000, 2% on $200,000 to $2 million, 5% on $2 million to $3 million, 10% above $3 million), the Quebec transfer tax (the \u201Ctaxe de mutation\u201D at up to 3% total), the property assessment (the MPAC and the BC Assessment), the property tax deferral for the seniors and the low-income households, the school tax, the vacant home tax (the UHT, the BC speculation tax, the Toronto VHT), and the GST/HST on the new home construction.
Canada Rental Property Expenses Guide (Deductible Expenses, CCA, T776, Non-Resident Rent)
the rental property expenses in Canada — the deductible rental expenses (the mortgage interest, the property taxes, the insurance, the repairs, the maintenance, the management fees, the utilities), the Capital Cost Allowance (CCA) on the rental property (the 4% declining balance on the building, the 20% on the appliances), the CCA recapture on sale, the T776 form (the \u201CStatement of Real Estate Rentals\u201D), the rental income reporting (the gross rent minus the expenses), the rental loss and the passive activity rules, the non-resident rental income (the s. 216 return), the GST/HST on the new residential rentals, and the \u201Cfixing-up\u201D expenses on the sale.
Canada Renting vs Buying Guide (Financial Comparison, Upfront Costs, Monthly Costs, Affordability, Decision)
the renting vs buying decision in Canada — the upfront costs of buying (the 'down payment at 5% to 20%', the 'land transfer tax', the 'CMHC insurance', the 'legal fees', the 'property inspection', the 'home inspection', the 'moving costs'), the monthly costs of buying (the 'mortgage payment', the 'property tax', the 'home insurance', the 'utilities', the 'maintenance reserve at 1% of the home value per year'), the monthly costs of renting (the 'rent', the 'renter's insurance', the 'utilities'), the rent vs buy comparison (the '5-year cost comparison' — the 'total cost of ownership vs the total cost of renting'), the CMHC rent vs buy calculator (the 'cmhc.ca rent or buy calculator'), the qualitative factors (the 'stability vs flexibility', the 'maintenance responsibility', the 'equity building vs the investment opportunity'), the Canadian housing market (the 'average home price in the Toronto at $1.1 million, the Vancouver at $1.2 million, the Montreal at $550,000, the Calgary at $580,000'), and the rent vs buy decision tool (the '5% rule' — the 'buy if the annual rent is more than 5% of the purchase price').
Canada Vacant Home Tax Guide (UHT, Underused Housing Tax, BC Speculation Tax, Toronto VHT)
the Underused Housing Tax (UHT) and the vacant home taxes in Canada — the federal UHT at 1% of the property value on the vacant or the underused residential property owned by the non-residents or the non-Canadians, the UHT exemptions (the seasonal properties, the medical reasons, the employment relocation, the safety concerns), the UHT filing deadline (April 30, the Form UHT-2900), the BC Speculation and Vacancy Tax (SVX) at 0.5% to 2% of the assessed value, the BC SVX exemptions (the principal residence, the long-term rental, the medical reasons), the Toronto Vacant Home Tax (VHT) at 1% of the CVA (the \u201Ccurrent value assessment\u201D), the Toronto VHT declaration (the annual occupancy status declaration), and the Vancouver Empty Homes Tax (EHT) at 3% of the property value.