GST Rules Change Regarding Rebate for Investors
Royal Consent was given to Bill C13 on 14 June 2001 that allows a realestate investor to claim a GST rebate on new construction the same as an owner occupier.
Here are some of the rules:
- The subject property must have been constructed after February 27, 2000.
- The property must be leased to a party that will use it as their principal residence.
- The property must not be resold in less than a year or any received rebate must be returned.
If an investor has already made a purchase and it qualifies under the new rules they can still apply for the rebate. They must provide a rental agreement and property insurance copy etc that serves as evidence that the property has been leased to a person using it as their principle residence.Applications must be filed by 14 June 2003.
Your client should confirm these details with their own accountant and not rely on this quick overview comment.
Deborah Upton, President
RE/MAX Crest Realty (Westside)
3215 Macdonald St.,
#2 - 1012 Beach Ave.,
Vancouver, BC Canada