As a landlord of an apartment building in Toronto, Ontario, it can be difficult to keep up with the current tax credits that are available. It’s important to take advantage of the credits if you want to save money on taxes and keep your business running smoothly. Here we will discuss some of the current tax credits available to landlords and what they entail.
Ontario Landlord Tax Credit (OFS-90)
The Ontario Landlord Tax Credit (OFS-90) is a non-refundable credit that allows landlords to claim 50% of their Ontario land transfer tax when purchasing or transferring a rental property. In order for landlords to be eligible for this credit, they must own the property for at least two years preceding the date of transfer or purchase. The total amount of this credit cannot exceed $2,000 per year per taxpayer. This credit is applied when filing your income taxes and can be claimed multiple times over several years if needed.
Harmonized Sales Tax Rebate (HST)
The Harmonized Sales Tax Rebate (HST) is also available to landlords in Toronto who own apartments or other rental properties. This rebate allows them to receive a portion of the HST paid on renovations or repairs made to their property during the year. It is important to note that certain conditions must be met in order for landlords to qualify for this rebate; they must have owned and occupied their property as their primary residence for at least one year prior to renovation or repair work being completed, and all work must have been completed by contractors registered with the Ministry of Finance’s HST program. The maximum amount of this rebate can range from $1,000-$24,000 depending on how much was spent on repairs or renovations during the year.
Land Transfer Tax Refund Program
The Land Transfer Tax Refund Program is available for first-time home buyers who are purchasing properties in Toronto; however it also applies to landlords who are buying rental properties as well. This program provides a full refund on any land transfer taxes paid when buying a home up to $4,000 per property purchased—this means that if you are buying multiple rental properties in one year, you may qualify for several refunds! To qualify for this program, you must meet certain criteria including being a Canadian citizen or permanent resident living in Ontario and having lived in Canada for at least 12 months before filing your income taxes — so it’s important to familiarize yourself with these requirements before applying.
Tax credits can provide significant savings when managing an apartment building in Toronto, Ontario. It’s important for landlords to understand which credits they may be eligible for so that they can maximize their savings each tax season. From OFS-90 and HST rebates to land transfer tax refunds, there are many ways that landlords can benefit from taking advantage of these credits when filing their income taxes each year! As always, make sure you review all requirements carefully before applying so that you don’t miss out on any potential savings!
How can SPM help?
At Spearhead Property Management Ltd., our team of managers consult with partnered CPAs and utility program repsentatives as part of the project planning stage. If rebates, government programs, and utility incentives are available, the applications and financial data are used for budgeting and timing purposes to give our clients every edge they need to invest in their properties. With savings coming in these forms, residents can also be content and confident that projects will go forward and ultimately provide a better place to live or work.