Gst on new rental properties

[wtoews]

I have just been told that if I purchase a brand new property that I will have to pay the GST on it because it will be a rental. If I were to live in it , then it would be deferred back to the builder. Is this correct, and if so is there any way I can recover some of the GST being paid out?

 

[Dan_Eisenhauer]

GST is paid on new construction whether or not it is your primary residence.

You can specify in your Agreement of Sale that that builder is to pay the GST, and/or get the GST rebate.

 

[MonteDobson]

QUOTE (wtoews @ Feb 10 2009, 01:13 AM) I have just been told that if I purchase a brand new property that I will have to pay the GST on it because it will be a rental. If I were to live in it , then it would be deferred back to the builder. Is this correct, and if so is there any way I can recover some of the GST being paid out?
From what I understand, the GST rebate is only available for owner occupied residences, and not in rentals unless you plan to live in a portion of the new building (ie. duplex). Some builders will promote that you can get the GST rebate for rentals by just "saying that it is owner-occupied". This is a grey area and not advisable.

More info at http://www.cra-arc.gc.ca/E/pub/gp/rc4028/rc4028-e.html

 

[SteffanWatson]

Yes you are eligible for the GST rebate even if you are renting out the property.

You must fill out form GST 524 "GST Rental Rebate Application". Since I get confused by CRA paperwork, I had our accountant fill this out for us (thanks George!).

http://www.cra-arc.gc.ca/E/pbg/gf/gst524/

We have since received our rebate.

Hope that helps!

Steffan

 

[wtoews]

Thanks for the links, I thought they should be there somewhere but couldn`t find them.
So if I read this correctly on a $300000 purchase with $15000 GST, I would only receive $8100 of my GST back.

 

[kennicoll]

QUOTE (RobWatson @ Feb 10 2009, 05:21 PM) Yes you are eligible for the GST rebate even if you are renting out the property.

You must fill out form GST 524 "GST Rental Rebate Application". Since I get confused by CRA paperwork, I had our accountant fill this out for us (thanks George!).

http://www.cra-arc.gc.ca/E/pbg/gf/gst524/

We have since received our rebate.

Hope that helps!

Steffan

hi Rob we purchased 3 new homes 2-3 years ago wolud we be able to qualify fir the gst rebate thanks

 

[SteffanWatson]

QUOTE (kennicoll @ Feb 12 2009, 05:19 PM) hi Rob we purchased 3 new homes 2-3 years ago wolud we be able to qualify fir the gst rebate thanks

I am not sure. i would think you could still claim it if you had all your paperwork.

i would check with your accountant, or call the CRA directly.

 

[kennicoll]

QUOTE (RobWatson @ Feb 12 2009, 05:27 PM) I am not sure. i would think you could still claim it if you had all your paperwork.

i would check with your accountant, or call the CRA directly.


thanks will check thanks ken

 

[Brianrpaul98]

Does this apply if you have flipped the property? Or, is it strictly for new construction buy and hold (rent out)?