Help with Vancouver's Empty Homes Tax: opening up a micro?

[sb9]

My condo in Vancouver is used for weekends, Thursday evening to Sunday. Then I leave Vancouver for work during the week. I consider Vancouver my home but legally, my apartment near work is where I file tax returns. Now that the city council and mayor have passed the Empty Homes Tax, I am in dire financial trouble. If I declare my Vancouver condo as my primary residence and they disagree, I could be fined $3.6M ($10,000 per day). Therefore, I want to get it legally right. I was thinking of renting my place out but the tenant can't use it on weekends when I am there.

I cannot think of a tenant that would agree to that except maybe a lady here on this board. Keep the place nice, do your stuff on the bed, etc. However, I need the tenant to sign a lease because that is a requirement to not have to pay the Empty Homes Tax. (trade place for play or under the table informal renting don't count).

Any suggestions? Any suggestions on not having to pay the Empty Houses Tax, which would be a few thousand a year for me?

 

[nwtl]

This might belong in another section of the forum... Renting to a SP under a proper lease sounds like a very practical solution. I'd stay away from any trades for play or even any play with that tenant regardless of the tax angle. You can soon also consider Airbnb 'legally' perhaps, if / when the city decides to regulate that, and if your strata is not against short term rentals.

 

[rxwca]

Maybe put this in another area on this board - PERB.cc Buy & Sell Zone. More SPs might check there.

 

[sb9]

Maybe put this in another area on this board - PERB.cc Buy & Sell Zone. More SPs might check there.

Thanks for the suggestion. Maybe in a day or two. For now, I would like user input on whether to rent it to a SP. I don't think I want to start my own micro because I don't want to hire people and even if I did, it wouldn't meet the new bylaws. The new bylaws says that it must be rented to someone else.

 

[greatshark]

From what I've read, whatever residence you claim in your tax returns as your principal residence, then that is off-limits for the Vancouver 1% tax.

So, if I read you correctly, you are claiming the Vancouver condo as your principal residence, and is the address you use on your tax returns, then you have nothing to worry about. Vancouver is just going after people who leave their houses empty that are not their primary or principal residence.

Btw, I would not rent it to an SP on that basis. As the law currently stands, that is an illegal activity and you would not be in a good position if you knowingly rented it out to an SP.

 

[sb9]

From what I've read, whatever residence you claim in your tax returns as your principal residence, then that is off-limits for the Vancouver 1% tax.

So, if I read you correctly, you are claiming the Vancouver condo as your principal residence, and is the address you use on your tax returns, then you have nothing to worry about. Vancouver is just going after people who leave their houses empty that are not their primary or principal residence.

Btw, I would not rent it to an SP on that basis. As the law currently stands, that is an illegal activity and you would not be in a good position if you knowingly rented it out to an SP.

No, I may not have written it clearly. My Vancouver place is not legally my primary residence. I just use it on weekends because my job is too far away to commute from Vancouver during the week.

If it were completely empty 7 days a week, then it would be easy to rent. However, it will be hard to rent 4-5 days a week.

 

[steiln]

if you are there on weekends, it is not empty. doubt you would have any issues

 

[sb9]

if you are there on weekends, it is not empty. doubt you would have any issues

That is what the Mayor wants you to believe so that he can pass the bylaw, which he did. Then the language of the bylaw doesn't say that. The owner must declare it as the primary residence, backed by tax returns, ICBC registration, voter registry, etc. If another home in another city in BC is your primary residence, then the Vancouver home is taxed thousands of dollars a year, even if you use it yourself. If they dispute your claim, then can fine you $10,000 per day or $3.65M a year.

They should have written the bylaw so that if you use it fairly often, it is not taxed, but they did not.

 

[Poonertime]

It's draconian and our mayor is a progressive taxation "red" but the housing issue in Vancouver is off the rails.