Cut down your property tax in Canada like a PRO [Guide]

Whether you're a new landlord or have many properties. 

You will always be looking for a way to cut down your tax. 

Since your net rental income would be in addition to your other sources of income, you will be taxed 38% federal, and 11.50% provincial in Ontario.

These are high rates. You can cut them down by:

• keeping track of all your property financials

• learning about the 7 (seven) deductions available

Here we go!

First-Time Home Buyers' Tax Credit (HBTC)

People who bought their first home in the last year can qualify for the First-Time Home Buyers' Tax Credit. This can add $750 to your tax refund. 

HomeBuyers Plan (HBP)

Individuals who are residents of Canada with a Registered Retirement Savings Plan could be eligible for a $35,000 tax-free withdrawal to use towards their first home's down payment. 

GST/HST New Housing Rebate

If an individual has paid a Goods and Services Tax (GST) or a Harmonized Sales Tax (HST) on a home that's been built or renovated, then they could be eligible for refundable credit in the form of a new housing rebate.

HBTC for people with disabilities

An individual who meets the CRA's criteria for a person with disabilities may be eligible for an HBTC even if it's not the first time they purchase a home. You can also get this if you have a spouse or common-law partner who qualifies. Not everyone will qualify, but it’s a good option for those who do.

Home Accessibility Tax Credit (HATC) 

The HATC is for people who make permanent renovations to their homes for accessibility. This is a common deduction to make if you or someone close to you needs help moving around the house. You may be able to save up to $10,000 in taxes.

Medical expenses tax credit

If a home must be made more accessible for a homeowner or qualified dependent, then as much as 25% of eligible medical expenses may be recovered as a tax credit refund. 

Rental income deductions

Rental real estate must be declared as taxable income. However, rental property owners can claim a series of allowable expenses. Rental property tax deductions include advertising fees, repair costs, property taxes, insurance, and interest on borrowed money used to purchase or renovate a rental property. Likewise, capital improvement costs may also be deductible.

Deducting property taxes from rental real estate tax returns can save a rental property business a considerable amount of money. The services of a property tax professional offer renting homeowners a great opportunity to improve their rental incomes. 

There are many options here. For landlords the rental income deductions provide many opportunities to deduct tax. 

Create an account at BoredLandlord and keep all your tax information neat & tidy.