What an awesome week we’ve had with the weather in the GTA. I hope you made some time to enjoy some outdoor activities this past week. There is so much going on with the personal tax filing deadline quickly approaching and for the chess fans out there, we have an exciting World Chess Championship going on right now…In this issue, I discuss a new update with respect to the new Underused Housing Tax as well as other topics. Enjoy this issue and please remember to share this with everyone in your network:
- Are You Required To File The New Underused Housing Tax Return?
For those of you that may not be aware, there is a newly introduced Federal Underused Housing Tax (UHT) which imposes a 1% annual tax on the value of residential real estate considered to be vacant or underused that is owned on December 31 of each year. You will likely be required to file this return if you own a residential rental property (less than 4 rental units) as:
- A non-resident of Canada
- A Canadian Controlled Private Corporations (CCPCs) that is not publicly traded
- A trustee of a trust (if you hold a property in your name in trust for a corporation, you will be required to file)
- A partner of a partnership
- A joint venture in a joint venture arrangement
The first filings and taxes are due by May 1, 2023. Penalties for failure to file the return (even where no tax is payable) start at $5,000 for individuals and $10,000 for corporations. Recently, CRA issued a news release indicating that penalties and interest under the UHTA for the 2022 calendar year will be waived for any late-filed underused housing tax (UHT) return and for any late-paid UHT payable, provided the return is filed or the UHT is paid by October 31, 2023. This is a big relief and a welcomed one.
- Personal Tax Return Filing Deadline Is Approaching…Have You Filed?
In the recent survey I completed on personal income taxes, 47% of you said you will be filing your taxes yourself, while another 24% plan to use a friend to help file their taxes. As technology continues to improve, we believe that this trend will continue to grow in the coming years. The truth is that filing personal taxes is not the hard part. What may be challenging is getting the appropriate insights from your tax returns that will enable you plan better going forward. As you file your tax returns this year, here are some questions to consider:
- What’s the dollar amount I paid in taxes?
- What’s my average tax rate?
- What’s my marginal tax rate?
- Why did I get a refund? Why did I NOT get a refund?
And when you have answers to these questions following the filing of your tax returns, you want to consider your next action steps. For example, what steps can you take in 2023 to pay less taxes than you did in 2022? This is where insights come in handy. As I’ve said many times, when you don’t get insights, you end up paying more in taxes than you’re required to and a dollar lost in taxes today will not only cost you a dollar today, IT WILL COST YOU A MULTIPLE OF THAT DOLLAR OVER TIME!
If you’re looking for INSIGHTS to help you minimize taxes, then consider the Personal Tax Services we offer. With our services, we can help you minimize taxes, improve cash flow and get ahead financially. Get the details here.
- How To Build A Tax-Efficient Financial Plan for Your Future
In this short video, I discuss how you can build a tax-efficient financial plan. It is an intentional financial plan designed to minimize or eliminate taxes. An efficient tax plan seeks to accomplish three things:
1. Save money tax-free or tax-efficiently
2. Grow money tax-free or tax-efficiently
3. Distribute money tax-free or tax-efficiently
I share some foundational elements you need to know, the key building blocks to wealth and a framework for doing so. Watch it here.
- How Can Family Banking Make You More Tax-Efficient?
Many of you may not be familiar with the concept of “Becoming Your Own Banker” and this is why I invite you to join me at the upcoming Family Banking Summit in Toronto on April 28th. At this event, you will learn how you can operate a Banking System within your family that will impact all other areas of your life from financing the next best investments, growing your business, planning for your holidays, giving your children a better education and many more. If you’ve been following me, you know how much I value the tax-efficient life and “Becoming Your Own Banker” is one of those strategies that will allow you shelter and grow your wealth tax-free. To learn more about the event and to register, go here. I look forward to seeing you there.
- A Call To Support Solid Rock Family Services
Research shows that 30% to 50% of youth who leave foster care will face massive challenges with obtaining affordable housing, adequate employment, mental health support, and life skills development to succeed in a volatile society! It is on this premise that Solid Rock Family Services remains committed to serving Toronto/GTA’s most vulnerable populations by developing robust services and transitional programs that will help position them for success.
I hope you can join me in supporting Solid Rock achieve their fund raising goal to help pay overhead costs, develop and deliver transformational programs and resources within a 1, 2, and 3-year transitional model in order to to provide youths with the quality support to position them for future success. Go here to learn more about this special organization and to register your support.