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 fall, the government proposed changes on how GST/HST is applied in certain types of partnerships, and the budget indicated they wanted to go ahead with these proposals. For details, see the full article on www.bdo.ca.
What steps should you take if you think you may be affected by these proposals?
- If you have a limited partnership structure, now is the time to talk to your advisors. They can help you determine how these proposals may or may not apply to you, and what steps you should take to comply.
- You’ll also want to review the structure of current and future real estate investments to take these proposals into account. (For more details on various real estate structures, please see Should I Incorporate My Real Estate Business? 5 Factors, which covers various structures, and the factors that will influence your decision to use one over another.)
If you have further questions on the GST/HST implications to your LP or ILP, please contact Scott Merry at smerry@bdo.ca.
Scott Merry, CPA, CGA
Partner, Indirect Tax
smerry@bdo.ca
