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Additions

HST to PST: Transition Rules for Real Property

Are there any special rules for commercial property?

No. For general application of the GST/HST to commercial real property sales and rentals, see this document: www.cra-arc.gc.ca/E/pub/gm/19-4-1/19-4-1-e.pdf.

HST Calculator for BC

This is a new feature that helps users calculate the HST owing on a BC real estate transaction.

Enhanced BC HST New Housing Rebate

Is the rebate available for rental properties?

Yes. New rental housing with a value of $850,000 and above is entitled to the maximum rebate of $42,500, under the following conditions:

• HST is payable on or after April 1, 2012 and before April 1, 2013, and
• there’s a reasonable expectation that the property will be used as a primary place of residence for a tenant or the builder for at least one year.

For qualifying multiple-unit rental housing (i.e., housing with more than two residential units), the maximum rebate amount of $42,500 will apply for each qualifying residential unit. The maximum rebate for residential land rentals is $14,025 for each qualifying lot or site.

First-Time New Home Buyers’ Bonus

Is the application form available now?

Yes, on the BC Ministry of Finance website: www.sbr.gov.bc.ca/individuals/income_taxes/personal_income_tax/tax_credits/fthb_bonus_forms.htm.

Grant for New Second and Recreational Homes

Generally, what secondary or recreational residences qualify?

Individuals meeting all of the following conditions are eligible to apply:

• HST was paid on or after April 1, 2012 and before April 1, 2013 to buy a new or substantially renovated house, or to build or substantially renovate a house,
• you or your relation will use the house as a secondary or recreational residence,
• the house is located in BC, but outside the Capital Regional District and the Greater Vancouver Regional District,
• you (and any other co-owners), or your relations, are the first occupants of the house, and
• the house will NOT be used for commercial purposes, such as vacation rentals, by an owner who is an HST registrant that can claim input tax credits for some or all of the HST paid on the home.

What if the secondary or recreational residence was bought by more than one person?

If two or more individuals buy a house or a share of the capital stock of a co-op, or build or substantially renovate a house, each of them must meet all of the eligibility conditions for the grant to be available—but only one of the individuals may apply for the grant. The grant is not available if any of the owners of the house is a partnership or a corporation.

Are applications forms available now?

Yes, and there are three application types (all forms can be completed online and then printed and mailed to the BC Ministry of Finance):

• Application Type 1 – FIN 201: Houses and Land Purchased From a Builder
• Application Type 2 – FIN 203: Owner-Built Houses
• Application Type 3 – FIN 210: Houses Purchased Together with Leased Land or Co-op Shares

Each category above has specific qualifications, in addition to the general qualifications. See the BC Ministry of Finance’s HST Notice #13 for more information.

Where can I learn more about the different three categories of secondary or recreational residences?

The BC Ministry of Finance’s HST Notice #13 is a very good resource. Questions can also be directed to the BC Ministry of finance: 1.877.388.4440 or CTBTaxQuestions@gov.bc.ca.

Is there a deadline to apply for the grant?

Yes, the BC Ministry of Finance must receive your application and supporting documents within six months from the date you took ownership or possession of the house (or in the case of a co-op within six months from the date you purchased the share in the co-op) and before October 1, 2013 (whichever date is earliest).

Is this grant only available to BC residents?

No.