UHT Section Part 2 - Assessed Value of Property

Tax Topics
1

A question to the community around the UHT return which filing is coming up this month for 2022 and 2023 tax years.

In part 2 of the return it asks for the “taxable value” of the property and per the CRA site, the taxable value of the residential property for a calendar year is the greater of the following amounts:

A. * The value of the residential property established by an authority that has the
power to establish the assessed value of property for purposes of calculating a
property tax, OR

B. * The residential property’s most recent sale price, on or before December 31 of the
calendar year

What information source have your clients been using to get these values? In Toronto and surrounding area, MPAC assessments haven’t been updated since 2016, so the values are much much lower than FMV.

I called the CRA and got bounced around to 4 different people and the final person said that the owner should get an appraisal done by a certified appraiser…The cost of which is around $500, per property. There is no way my clients will pay thousands of dollars for an appraisal.

Looking forward to the groups feedback
Thnaks

2

A copy of the final 2023 property tax bill will give you the Taxing Authorities assessed value (broken into residential, farm, commercial, industrial etc).

https://housesigma.com/

Will generally give you historical sales data for most properties that were sold “on the market”. Private sales don’t always show up on housesigma.

1 Like
3

Thanks. The municipal property tax bill assessed value is less than half the FMV of the property, so it would be the amount used.

My question is, will the CRA consider an comparable house listing off a realty website as an “official” source document.

This whole UHT reporting has the DNA of the previous Bare Trust reporting…

4

For anyone who is not paying the UHT tax…I just report the assessed value from the prior year’s tax statement and ignore the other one.

This is not MY make-work project. Feds want the rest? They can look it up. One man’s approach. :slight_smile:

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5

HAHA. I am with you in this one

6

Are you just looking for the values for lines 280 and 285 or are you looking to make the part 7 Fair Market Value election?

line 280 asks for assesed value
line 285 asks for previous sale for that property

Housesigma, in many cases will give you historical sales data for that particular property, not comparables.

I don’t think you need FMV unless you are electing.