July 21, 2010
Harmonization – GST to HST
The following courtesy of Brian Sanders, CA
Residential Real Property – Summary
Harmonization – GST to HST
BC Residential New Housing Rebates
• Applicable to provincial component of HST only
• Rebate equal to 71.43% (5%) of provincial component
• Maximum rebate $26,250
• Full rebate for value up to $525,000
• Properties qualify based on existing GST rules for New Housing Rebates, generally:
• New homes together with land
• New homes on leased land
• New mobile and floating homes
• Purchase of qualifying share in housing co-op
• Home constructed or substantially renovated by owner individual
BC Residential New Housing Rebates (Cont.)
• Existing GST new housing rebates remain
• Rebates administered by CRA through rebate applications
• Builder (defined term) can credit rebate to purchaser at time of purchase
• Must be purchased as primary residence of purchaser or relative
• Rebate for home on leased land – 4.47% of price attributable to bldg
• Home on leased land could be purchased for up to $588,000 without incurring additional HST
• Rebate for Co-op shares - 4.47 % of share price – max at $588,000
• Maximum rebate reduced to $17,588 for owner-built or substantially renovated homes if provincial component of HST not paid on land
Harmonization – GST to HST
BC New Rental Housing Rebates
• Similar to New Housing Rebate
• Available to
• Landlords who construct or substantially renovate their own rental housing (required to self-assess)
• Landlords who purchase new or substantially renovated rental housing if HST paid on purchase
• Available when expected final use for occupancy by individual under rental arrangement
• Also available for exempt rental of land for residential use (eg. Trailer park site) if required to self-assess under self-supply or change of use rules (max rebate $8,663)
Above information provided courtesy of Brian Sanders, CA (briansanders@kel.mackay.ca)
Full information available at the Government website - follow this link direct to HST details: http://www.sbr.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/HST_Transitional_Rules.html
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Contact Jerry Geen
email jerry@teamgeen.com
direct (250) 870-3888
phone (250) 717-5000
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