2023 New Canadian real estate LAWS
New measures include first time savings account, anti-flipping laws, tax incentive for new homebuyers and tax on non-resident property owners
Navtaj Chandhoke | Jan 1st, 2023 | www.Flipping4Profit.ca
Canadian real estate investors must be aware of these new laws and use the professional advice from experts. Canadian federal and provincial governments have introduced new laws to address to boosting the supply of affordable housing. Most of them are focused on flipping houses, unused vacant home taxes, foreign buyers and introducing new program for first time home buyers’ plan.
A First Home Savings Account (FHSA), an increased tax on home-flipping and a tax on unused or underused housing are among the new measures now in effect. You can watch on YouTube.
2023 CANADIAN REAL ESTATE LAWS
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First Home Savings Account (FHSA)
The FHSA allows certain homebuyers to save up to $40,000 toward a home purchase, with a maximum annual contribution of $8,000 over five years. Contributions to the FHSA are tax-deductible and withdrawals to purchase a home are tax-free.
Multigenerational Home Renovation Tax Credit
Another new tax benefit related to housing is the Multigenerational Home Renovation Tax Credit. The refundable tax credit will provide up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability to live with family members. Eligible families can claim 15% of a maximum $50,000 in home renovation and construction costs to build a secondary housing suite.
New taxes on home-flipping
The government brought in a new rule in Budget 2022 which has effectively increased taxes on home-flipping. The change means the government will assume anyone who sells a home after possessing it for less than 12 months will be considered to be flipping the property. Profits from the sale would be considered business income, not a capital gain.
But the change comes with a number of exceptions, such as selling a home because of a death or divorce and lot more reasons.
Canada’s new anti-flipping rules for residential real estate are scheduled to come into force on Jan. 1, 2023 Please WATCH, SHARE, SUBSCRIBE and add comments. https://youtu.be/zRcc-SkdBJA
Underused Housing Tax (UHT)
The government is also introducing an Underused Housing Tax (UHT).
The UHT is a national, annual one per cent tax on the value of vacant and underused residential property in Canada owned directly or indirectly by non-resident, non-Canadians. Any non-resident, non-Canadian who owns an underused or vacant residential property in Canada as of December 31, 2022 will have to file a UHT return for the property by April 30, 2023.
Doubling the First-Time Home Buyers’ Tax Credit
Help Canadians save on closing costs by doubling the First-Time Home Buyers’ Tax Credit to provide up to $1,500 in direct support to home buyers, starting in 2022, to offset the increasing closing costs involved in buying a home.
Other changes by the province
British Columbia and Ontario government have also introduced new laws. 2023 New Canadian real estate LAWS are going to effect the Canadian real estate market and may provide affordable housing for Canadians.
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