Navigating Real Estate Taxes in Quebec for Year-End

As the year winds down, real estate owners in Quebec should focus on key tax considerations to optimize their financial standing. Here’s what to keep in mind:

Municipal and School Taxes

Ensure your municipal and school taxes are up to date. Payments are typically spread across installments, and penalties can apply if you’re late.

Review your account to confirm there’s no outstanding balance.

Capital Gains Tax

If you’ve sold a property in 2024, calculate any potential capital gains tax liability.

Primary residences are exempt, but secondary properties are subject to tax on 50% of the gain.

Property Tax Adjustments

For newly purchased properties, verify that the adjustment of property taxes between buyer and seller at closing was accurate.

This can impact your final tax return.

Deductible Expenses

Landlords can deduct certain expenses, such as mortgage interest, repairs, and property management fees.

Keep detailed records to claim these deductions.

Tax Credits for Renovations

Take advantage of provincial tax credits for energy-efficient home renovations.

Submit the necessary documentation before deadlines.

Plan for the 2025 Valuation Cycle

Quebec reassesses property values every three years. If you’re in Montreal, anticipate the next cycle’s impact on taxes and budget accordingly.

Consult a Tax Professional

Quebec’s tax system can be complex. Consulting with a tax advisor ensures compliance and identifies additional savings opportunities.

Preparing now will help you avoid surprises and make the most of available tax benefits before the year ends.