Archive for the ‘HST’ Category

Short-term rentals: Top GST/HST questions answered

Posted on: July 9th, 2019 by Real Estate Accountants 7 Comments

Short-term rentals have seen a noticeable increase in popularity the last few years. Whether people decide to rent out their homes while on vacation, buy a block of properties to use for AirBnB, or share their cottage on the weekends, the demand for short-term and weekend getaways is ever-present. Plus, there’s often more money to […]

What to watch with trust agreements and GST/HST New Housing Rebates

Posted on: January 28th, 2019 by Real Estate Accountants

The need to carefully consider who is entitled to the GST/HST New Housing Rebate has been emphasized in recent court cases involving trust agreements. A trust agreement is an agreement between two parties where one party has done something on behalf of the other. We see these agreements in real estate where an individual has […]

Real estate audits – CRA renews its focus on the industry

Posted on: August 9th, 2018 by Real Estate Accountants

We have been warning for many years now that the Canada Revenue Agency (CRA) has been placing a renewed focus on real estate audits. These real estate audits can cover real estate investors, realtors, developers, and contractors, among others, across the country. This is resulting in a significant uptick in taxes and penalties for those […]

Cottage or vacation property rentals and GST/HST

Posted on: May 17th, 2018 by Real Estate Accountants 45 Comments
Cottage or vacation property rental and GST/HST

As we head into vacation season, we often get questions related to GST/HST on cottage or vacation property rentals using services such as Airbnb. For example: “I purchased a cottage that is closing on June 1st. I plan to rent this out for short-term rentals on Airbnb. I am also planning to turn another cottage […]

Limited Partnerships: GST/HST Changes Proposed

Posted on: April 24th, 2018 by Real Estate Accountants
Limited Partnerships - GST/HST Changes - Talk to Advisors

Is a limited partnership part of your real estate business structure? If so, changes may be coming to your GST/HST obligations. The 2018 Federal Budget will impact GST/HST and its application on limited partnerships (LP) that are now defined to be “investment limited partnerships”. Investment limited partnerships, or ILPs, are a newly defined entity. Last […]

GST/HST Pitfalls of Buying Real Estate “In Trust”

Posted on: June 23rd, 2017 by Real Estate Accountants 2 Comments

Who pays the GST/HST can be tricky to answer on real estate purchases, especially when done “In Trust” for another corporation. A recent court case, 2252493 Ontario Limited vs the Queen, provided some direction on this situation, and an expensive lesson learned for the vendor of the property. Background on buying “In Trust” case The […]

GST/HST New Housing Rebate: 4 things every real estate investor must know

Posted on: October 27th, 2016 by Real Estate Accountants 2 Comments

Receiving a GST/HST new housing rebate can mean a substantial chunk of money back in a real estate investors pocket to re-invest. However, the new housing rebate forms and process has some built-in difficulties that can mean the money that should be coming to you will stay firmly in the government’s hands. While the process […]

3 GST/HST areas to navigate when constructing multi-unit residential buildings

Posted on: September 29th, 2016 by Real Estate Accountants 23 Comments

GST/HST issues surrounding building multi-unit residential complexes are questions that have a large impact on cash flow and costs. Savvy real estate investors and builders coordinate the intricacies of GST/HST issues with their real estate accountants as  a matter of course to avoid surprises. Builders and investors must consider at least three GST/HST areas when constructing a residential […]

Q&A: Is HST applicable on a rental property if commercially zoned but all units are residential rentals?

Posted on: January 28th, 2016 by Real Estate Accountants 2 Comments

Question: We are investigating the purchase of a rental property in an Ontario town, and have a quick question about the HST. The property is presently set up as four residential rental units, but it is zoned commercial. From conversations with the city, apparently the property is to include three residential and one commercial unit. If […]

Understanding GST/HST Housing Rebates

Posted on: July 1st, 2015 by Real Estate Accountants 2 Comments

GST/HST tax is an area where real property owners and sellers have many questions. “With increased property values, HST is becoming a bigger issue on the sale of real property, including farmland.  See the referenced article for some of the issues to consider when buying or selling real property,” says Scott Merry, CPA, and Senior Manager […]