As strata managers, we get asked from most of the Strata Council’s that we work with quite frequently.
What does CRA require strata corporations to file?
All strata corporations in BC are required to file a corporate income tax return each and every year, regardless of how much tax is payable. Strata Corporations are considered Non-profit organizations, and are typically exempt from having to pay tax.
Strata corporations are required to file a T2 returns, or a T2 short return, which is a simpler version of the T2. To do this, strata corporations must first obtain a business number.
What other forms do strata corporations have to file?
Strata Corporations with more than $200k in the bank at the end of the year, or that collected more than $10,000 in interest and/or rental income must also file what’s called a T1044 form; Non-Profit Organization Information Return.
What if my strata corporation doesn’t file a corporate return?
Having said all that, the reality is that many small strata corporations don’t file these forms, and nothing ever happens as a consequence. Many smaller strata building see these returns as unnecessary expense, and simply don’t ever apply for Federal business number. And remember, once you file, you are in the system, so this will be a recurring fee for you.
If you are looking for some practical advice regarding managing your strata property, please reach out to our property management company here!