Speculation Tax Declaration
In British Columbia each year owners of property in BC are required to declare for the Speculation and Vacancy Tax. Each owner of the property is required to declare what their status with the property is. Are they residing in the property as their primary residence, renting the property, or is the property vacant.
As an owner of a rental property you are exempt from paying the tax if the property is rented. When making your declaration you need to indicate the property is occupied by a renter. There may be a requirement to supply proof of the tenancy. The declaration is required to be made by the end of March each year. The BC Government mails the declaration document to each owner starting in January of each year. If you are not sure if you have received the declaration documents you can contact the speculation tax department and they will advise you where they are mailing the documents. If you reside in the property you would receive them at the property. When you are the owner of an investment property you want to ensure the documents are being sent to an address you will receive them at. This is very important for non resident owners. You may need to change the mailing address at Land Title and BC Assessment to ensure the documents are being sent to the correct location for you.
Failing to declare may result in the government assessing the property and applying the speculation tax. Each month the tax is not paid, the government will apply interest to your account. If you fail to declare at the appropriate time, the government does allow for a declaration to be made at a later date. There is a time limit of three years after the year ending for which the declaration is required to be made, for which you can make a declaration. If a declaration is not made by this point the government won’t accept a declaration.
It is important to know the requirements of the taxes you are required to pay on your investment properties. We suggest you obtain professional tax advice regarding your investment.
Need assistance managing your rental property? contact us for an evaluation of your needs.
Cartref Properties specializes in managing rental units located within Strata Corporations.
www.cartrefproperties.com
