UHT-2900 Underused Housing Tax Return and Election Form

Many private Canadian corporations, trusts and partnerships will be exempt from the tax, but must still file the return (UHT-2900 Underused Housing Tax Return and Election Form), in order to claim their exemption.

The penalties for affected owners for non-filing are a minimum of:

• $5,000 per individual per property, or
• $10,000 for non-individuals
• In addition to the minimum above penalties, add:
• 5% of the tax calculated for the calendar year, plus
• 3% of the tax calculated multiplied by the number of complete months that the return is late.

If you are in the business of constructing and selling residential houses, you are still required to complete a UHT return if you owned the property as of December 31, 2022. However, tax exemptions may apply under specific conditions related to the property’s completion date and sale status.