lease/option and HST

[HandyAndy]

I am trying to put together a deal with a buyer for some vacation property I have.

When does the HST become payable with a VTB, and how is it calculated?

Are there some good ways to structure a deal in order to minimize this tax?

 

[moparcanuck]

HST is only applicable on either commercial property or brand new residential property. When you say it's a vacation property, I assume that means that it was a 'get away' type property in which case HST would not apply. That being said, if you were renting it out on a short term basis (less than a month at a time) like a hotel, HST may start to kick in.

 

[HandyAndy]

Thanks for your response.

The property is raw undeveloped seasonal vacation property.

The buyer informed me he would have to pay 13%HST, which put it out of reach for him.

I'm looking for ways to minimize the impact, like perhaps a lower asking price with a higher interest rate.