gst and rental properties

[rbaldonado]

i have a rental condo property. i am not occupying the condo.


it is not a new property hence cannot claim gst. my question is


do you need to charge gst or pay gst to revenue canada? please advice





rose

 

[sjanzen]

You only pay gst on new or never occupied properties and it only happens once.


Susan Janzen

 

[Thomas Beyer]

The short answer is: no.





The long answer is: you pay GST [or HST in BC or ON] on most of your expenses .. but do not collect it on rent ! And since you do not collect it you do not remit it to the government. The recipient of your cash, say a contractor or the utility company or the property management firm has to pay those GST payments (paid by you) to the government !





Thus, owners in BC and ON got a rent decrease this year on July 1 (as they now pay more for most of their expenses) .. and this on top of a rent controlled market ! Thus, consider if investments into these socialist provinces is the right thing to do .. or if other places, like MB or SK or AB are better for business investments !





Also: GST/HSP is payable on NEW condos/houses only .. or for commercial like retail, office ..