A question for those with a strong (stronger than me) background in accounting:
I understand that when dealing with commercial property owned under a registered corporation you can recoup HST (yes, this is Ontario). For example the HST I pay on renovation, utilities and professional services can be clawed back at tax time.
Assuming the above is correct, what happens with a property is mixed use commercial and residential? For example, I have a property on a main street that has retail on the main floor and a 10 suite apartment above it. From what I understand, I can only recoup HST from the commercial portion of the property. Is this correct? If so, how do I determine what percentage of a invoice is commercial and what portion is residential (eg. redo the roof, it affects 'both' property classes).
Any insight here?
I understand that when dealing with commercial property owned under a registered corporation you can recoup HST (yes, this is Ontario). For example the HST I pay on renovation, utilities and professional services can be clawed back at tax time.
Assuming the above is correct, what happens with a property is mixed use commercial and residential? For example, I have a property on a main street that has retail on the main floor and a 10 suite apartment above it. From what I understand, I can only recoup HST from the commercial portion of the property. Is this correct? If so, how do I determine what percentage of a invoice is commercial and what portion is residential (eg. redo the roof, it affects 'both' property classes).
Any insight here?