Marco asked in Business & FinanceTaxesCanada · 10 years ago

tax refund for new condo when purchasing as revenue property?

When purchasing a new condo in Quebec, you pay TPS and TVQ on the price of the property. I am currently registered and have my own TPS and TVQ numbers for my personnal business. Is it possible to claim the taxes paid on my condo on my income tax if the property is being used for revenue? (I am renting the condo, not living in it)

1 Answer

  • George
    Lv 6
    10 years ago
    Favorite Answer

    I'm assuming that the condo is residential, and you're renting it to someone who will live in it.

    You're on your own for TVQ, I know nothing about that, however the rules are probably similar to GST (or TPS en Francais).

    Since it is residential, it is GST/HST exempt, so no input tax credits allowed, and you don't charge GST/HST on the rent. The GST/HST that you paid on purchasing the condo is part of the capital cost, and you can claim CCA on it if you want, but that's generally a bad idea on rental properties since their vaule goes up over time. GST/HST that you pay on maintenance fees etc is an expense, and reduces your rental income. You cannot claim any GST/HST you pay related to the rental operation as an input tax credit.

    So, the GST/HST on expenses can be "claimed on your income tax" as an expense reducing your net rental income.

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