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A tax deferral allows an elderly taxpayer to defer all or a portion of their tax obligation. The Clause 41A tax deferral option should be considered when a taxpayers current expenses make the continued ownership of his/her home difficult. However, because of the 8% interest applied to the deferred taxes, deferral may be more expensive over time then the payment of the tax. The deferred amount will become a lien on your property. As opposed to a property tax exemption, the deferred taxes must eventually be repaid when the property is sold, transferred or upon the demise of the
owner. Applicants must be 65 on July 1, with a maximum income of $40,000.
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