Posted on: 03-12-10 12:12:14
Did the rules with HST change again recently ..? I know HST for houses more then 400K ..
I was looking for a TH in Milton for about 300k and the construction company said that if it is a investment or a second house.. then 13 % HST is now applied ...
I am a Canadian citizen, work in US on H1 and pay my taxes in US and Canada and have 1 house in Milton which I had to rent since I am working in US ...
Since real estate is up significantly I was planning to buy a second property ..
Looking up for some inputs from folks on the Canadian Desi.
hi,
I think, i could answer your questions, but at this point of time, i have to confirm from my brokerage.
would you send an email to my address - and we will discuss the matter.
thanks again
rapid rash
Landlord held hostage by real-estate investments
http://www.financialpost.com/personal-finance/family/Landlord+held+hostage+real+estate+investments/3988718/story.html#ixzz18aMozYuT
http://www.theglobeandmail.com/report-on-business/commentary/barrie-mckenna/why-mark-carneys-speaking-to-more-than-you-and-your-neighbour/article1843910/
Quote:
Originally posted by pr13
Did the rules with HST change again recently ..? I know HST for houses more then 400K ..
I was looking for a TH in Milton for about 300k and the construction company said that if it is a investment or a second house.. then 13 % HST is now applied ...
I am a Canadian citizen, work in US on H1 and pay my taxes in US and Canada and have 1 house in Milton which I had to rent since I am working in US ...
Since real estate is up significantly I was planning to buy a second property ..
Looking up for some inputs from folks on the Canadian Desi.
You would need to pay the HST during closing, after that you can claim the Rebates for "some of the Federal portion and some of the Provincial portion of HST" by applying for NRRPR (New Residential Rental Property Rebate).
As a residential landlord, you cannot claim an input tax
credit (ITC) to recover the GST/HST paid or payable on the
purchase of a residence because long-term
residential leases are exempt from GST/HST.
------> However,
i) you can claim the new residential rental
property (NRRP) rebate for "some of the federal
part of the HST" that was paid for your newly constructed or
substantially renovated rental property.
Complete the form GST 524
http://www.cra-arc.gc.ca/E/pbg/gf/gst524/
ii) You can also claim a provincial new residential
rental property rebate for "some of the provincial part of
the HST" that was paid for your property situated in
Ontario or British Columbia.
Complete the form RC7524-ON (GST524- Ontario Rebate Schedule)
http://www.cra-arc.gc.ca/E/pbg/tf/rc7524-on/
How much rebate would you get?
Your NRRP rebate is based on the fair
market value (FMV) of your qualifying residential unit. The rebate is NOT
BASED ON YOUR PURCHASE PRICE.
Generally, the FMV of a unit is the value of the building,
the applicable land, and all other structures (for example, a
detached garage or shed) that are reasonably necessary for
the use and enjoyment of the unit as a place of residence for
individuals. It is the highest price that you can get in the
real estate market between unrelated parties and should be
comparable to the values of similar housing in the local real
estate market. FMV does not include any GST/HST
payable on the FMV or provincial land transfer taxes.
The processing time is roughly about 8 weeks.
You may want to go through this guide for further guidelines.
http://www.cra-arc.gc.ca/E/pub/gp/rc4231/rc4231-10e.pdf
Feel free to contact me for more info. Good Luck!
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Ram Saravanan
REALTOR®
Homelife Landmark Realty Inc. Brokerage
Tel: 647-200-2266
Please review some tips on Real Estate Investment:
1. Do not overanalyze. You may lose a lot of great opportunities to make great deal of money. Start making offers!
2. Get the property under a contract first with a safety clause.
3. Ask fellow investors, real estate broker about the property value. If it makes sense go ahead with the purchase.
4. If you are buying for a quick flip neighborhoods do not matter. What matters is the $$$ you are going to make.
5. Your perfect buy should be a house/condo/building in excellent condition and in a good neighborhood.
6. Your Second choice should be a cosmetic fixer in a good neighborhood.
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