Common tax mistakes to avoid with your family cottage
Published: September 19, 2023
Updated: September 19, 2023
While owners reminisce about summer memories at the family cottage, now may be a good time to consider future plans for their property or address lingering questions.
With summer behind us, cottage owners may want to continue (or start) renting out the cottage, or get some renovations done before winter arrives. It is a good idea to understand the income tax consequences of these activities so that there are no surprises when personal tax returns need to be filed. We explain some of these common situations in our Q&A: Tax planning strategies for cottage owners article.
Thinking further ahead, for many cottage owners, the hope is to keep their cottage in the family for generations to come. With careful consideration and planning, there are ways to do this tax-efficiently that work for the family while considering their financial situation and family dynamics.
Stay tuned for an upcoming article on succession planning for the family cottage.
In the meantime, a BDO tax advisor can provide valuable advice to help with the transition so that family memories at the cottage can continue for many years.
The information in this publication is current as of Sept. 07, 2023.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.