GST on new construction of rental property.

[Kevmeister]

Owing to a discussion I just had I was just curious whether the GST costs associated with constructing a house/unit can be claimed as an input tax credit if the property is subsequently used for rental purposes?

Or does the GST get incorporated into the capital gains calculations somewhere along the way?

(Or any other possibility I guess).

[DaleGG]

Originally posted by Kevmeister
Owing to a discussion I just had I was just curious whether the GST costs associated with constructing a house/unit can be claimed as an input tax credit if the property is subsequently used for rental purposes?

Or does the GST get incorporated into the capital gains calculations somewhere along the way?

(Or any other possibility I guess).

Hi

In reality, no you cannot claim the input credits.

In practice, you may claim them if you intend to sell the unit within 5 years, but, if you rent the unit out in the meantime, you should then refund the input credits to the tax office until such time as you sell. This get's very messy and hence my initial answer.

have fun

Dale