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If you build a residential property and rent it out you can’t claim input tax credits on the cost of the construction. This is because residential rent is input taxed, ie no GST is payable on the rent received but no input tax credits are allowed for the costs of building the rental property.
However, when you sell a new residential property that has been rented (unless it has been rented for 5 years) the sale will be subject to GST, and some input tax credits may be available at that time.
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