You know, some things just seem so simple… Take the following question, for example; Does GST apply to the sale of your home? You’d assume the answer would be a simple and straightforward “No, there’s no GST on a resale home.” LOL…Assumptions are dangerous. (I’m sure I’ve said this before.) The actual answer is a much more complex “Maybe. Actually, generally no, but possibly.” You must be thinking, “wait, what?” The fact of the matter is the only one who can answer this is you or your accountant. It’s all based on how you’ve filed your taxes, so every case is different. For example, if you own an acreage and run a business on it or lease a portion of to, let’s say, a cell tower or an oil well, you may have obligations to pay GST on the sale of your property. This could apply to a residential property as well - if you operate a home-based business, or possibly even if you claim a portion of your home as a home office as a deduction on your income taxes. So, you have two choices here: you can assume that there is no GST payable, or you can consult an expert or Canada Customs and Revenue Agency to get the answers. They might tell you that GST is payable on those portions you have claimed as business expenses or generating revenue. We highly recommend you talk to the experts about GST before listing your property for sale, where GST, if any, may be included in the price. So there you have it. Straight up. Does GST apply in the sale of your property? Yes, No, maybe so. Posted by Liv Real Estate on
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