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 we were to purchase the property through our company, would HST be applicable?
The nature of the property and prior use of the property are what decides whether or not HST is triggered as compared to what it could be used for from a zoning perspective. If it is a used residential property prior to the sale, then typically no HST would be applicable.
Scott Merry, CPA, and Senior Manager of Commodity Tax for BDO CanadaTags: commercial, GST/HST, real estate accountant