Tax Accountants (HST related)

[Eagle Eye]

Was wondering if there are any tax accountants out there who could help me out with the new HST in BC.

My wife and I are looking at purchasing a property in Panorama, and the property is currently in a rental pool. We would likely do a little renovation and then rent the property out our selves.

I am just trying to figure out how much HST I would be paying (after the credits), or if I have to pay it.

Thanks

[squiggs96]

Originally Posted by Eagle Eye

Was wondering if there are any tax accountants out there who could help me out with the new HST in BC.

My wife and I are looking at purchasing a property in Panorama, and the property is currently in a rental pool. We would likely do a little renovation and then rent the property out our selves.

I am just trying to figure out how much HST I would be paying (after the credits), or if I have to pay it.

Thanks

If the place is used, then there is no HST. If the place is new, you pay 12% and then receive a credit based on the purchase price. Renovations are all at 12%. You do not charge HST on rent, so there is no calculation there.

[Eagle Eye]

Originally Posted by squiggs96

If the place is used, then there is no HST. If the place is new, you pay 12% and then receive a credit based on the purchase price. Renovations are all at 12%. You do not charge HST on rent, so there is no calculation there.

But from what I read it seems that if you plan on renting the property (even if it is not fully rented as I would be using it as well), then the Canadian goverenment considers it as a business and there for you are charged GST on the purchase, now because of the BC goverment implenmenting HST it is now combined.

I fully hope I am wrong.

[Winsor_Pilates]

There is no HST on used property here in BC, even if it's a rental property. You're good to go.
If it's brand new and under $525,000 you're looking at between 5.2%-7% after rebate depending on the price of the home. Rebates are available to investors and primary residents; same amounts, just different forms.

[Mccree]

If the rentals period is less than 30days you will need to charge HST (like a hotel).

[Eagle Eye]

Thanks for the info guys.