GST/HST - Real Property
Overview:
The application of GST/HST to real property transactions can be complex, particularly when part of the property may include a residential component. Failure to appreciate these complexities, especially rules related to deemed supplies and exemption entitlements can result in significant and unexpected liabilities. This course increases awareness of some important GST/HST issues associated with real property transactions.
This course will explore the important GST/HST issues associated with real property transactions, including construction or substantial renovation of residential property, sale of real property including contract assignments, joint-ventures and partnerships, issues related to leasehold allowances and expense recoveries, and the special rules applicable to supplies of real property by charities and other public service bodies. The presentation will be in a lecture format, using examples drawn from CRA rulings, case law and real-life experiences of the presenter and participants. Where appropriate, CRA assessing practices and issues regarding self-supply rules will be addressed.
Course Content:
In this course, you will gain knowledge about the following topics:
- Key concepts, including the definition of residential complex and builder
- Major sale and rental exemptions, including important differences between condominium and bare-land strata fees
- Deemed self-supply rules related to construction or renovation of a residential complex including ‘property-flips’
- Application of GST/HST to the construction and sale of residential projects on leased land, including First Nations territories
- The differences between the use of joint-ventures and partnerships
- Discussion and illustration of the complex exemptions for sales by individuals
- ITC entitlements and restrictions and various rebate programs
- Tax collection and reporting obligations of registrants and non-registrants
- Special rules applicable to the non-profit sector
- Some important provincial tax issues associated with real property transactions
Learning Objectives:
Upon completing this course, you should be able to:
- Identify key definitions and concepts important to real property transactions, including real property exemptions
- Apply the self-supply rules related to the construction of new housing, including property flippers
- Address and apply tax collection and accounting issues including special rules for Joint Ventures and partnerships
- Identify ITC entitlements (including restrictions) and rebates
Who Will Benefit:
Financial professionals who provide advice on, or participate in, the purchase, sale, or rental of real property.