February 15th, 2024
CPA – real estate companies
Reminder #2 :
100% GST rebate for residential rental properties as of September 13, 2023 (October 2023)
The planned legislation regarding the enhancement of the GST residential rental property rebate to build more apartments for tenants would increase the GST residential rental property rebate that qualifies from 36% to 100%.
For more information, read the official announcement from the Department of Finance Canada at the following link: https://www.canada.ca/en/department-finance/news/2023/09/enhanced-gst-rental-rebate-to-build-more-apartments-for-renters.html
Prince Edward Island has also announced a new HST rebate program for buildings.
The legislation will allow a full rebate of the provincial portion of the HST (10%) on qualifying real estate projects, up to a maximum of $35,000 per unit.
Construction must have begun on or after September 14, 2023 and be completed by the end of 2028 to qualify for full reimbursement.
Projects ending after 2028 will be eligible for partial reimbursement until 2035.
New rule on the precipitous resale of a property (house or apartment building)
As of January 1, 2023, a new tax rule ensures that, unless they fall into various exceptions, profits from the precipitous resale of residential real estate (including rental property or a right to purchase) that an individual has held for less than 365 consecutive days before reselling it will be subject to full taxation.
Exceptions are often linked to significant life events, such as a death, birth, separation, serious illness, change of employment, and so on.
