Own Property? Here’s What You Need to Know About Filing Your Taxes This Year.
Updated: Oct 9
Original article by:
Zakiya Kassam
STOREYS
April 7, 2023
📰 Read the FULL ARTICLE here.
I spoke with STOREYS about what homeowners and property owners need to know when filing their taxes. Here are the highlights and my contributions.
Key Takeaways
For most homeowners, filing taxes is fairly simple, but it pays to know which rebates, benefits and credits you qualify for.
Common homeowner programs include the GST/HST New Housing Rebate, the First-Time Home Buyer's Tax Credit, the Home Accessibility Tax Credit and the Multi-Generational Home Renovation Tax Credit.
Rental property owners face more complexity, such as separating current and capital expenses, so a professional accountant can add real value.
Mistakes or underreported income can lead to back taxes, interest and penalties, sometimes years later.
Some owners may need to file an Underused Housing Tax return, and rental income from foreign property must be reported too.
My Perspective
Filing as a homeowner doesn't have to be complicated, but you should know what's available to you. Some programs put cash in your pocket, while others reduce the taxes you owe.
"There are rebates and benefits, paid out to you in cash, and tax credits, which reduce taxes owed, that you can claim."
If you work from home and claim home office expenses, be precise and keep your receipts. These claims are often poorly measured, which makes them more likely to be challenged by the CRA.
"Don't guess at the values. If the CRA audits you and you cannot produce proof of expenses with receipts, they will deny the expenses and you'll be left having to pay back the difference in taxes owed."
The federal benefits finder and your province's government website are good places to look for other programs. And unless you sold a property during the year, online tax software will prompt you for most of these credits, though some, like the new housing rebate, need a separate application.
Originally published in STOREYS by Zakiya Kassam on April 7, 2023. Use the link at the top of this post to read the full article.
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