I’m also buying a new house to rent out. Why don’t I get a consumption tax refund for my new house?

Have you heard of sale-leaseback or leaseback? It is a business model where the developer rents the house back to you, manages the property for you, and pays you a fixed rent every month.

For developers, this model can quickly collect funds and invest in the next project, and for those who buy investment properties, it reduces the trouble of renting out the property. It seems to have many advantages, but if you buy such a sale-leaseback investment property, it is very likely that you will not be able to participate in the new housing rebate, and you may even have to pay taxes. Why is this?

 

Related articles

  • Non-Resident Rental Property Claim

    The Canada Revenue Agency stipulates that non-tax residents (such as investors from China, the United States or outside Canada) need to withhold 25% of their income from rental income from real estate in Canada. This withholding tax is often more than the actual amount payable.
  • Foreign Buyer Tax NRST

    海外买家税全称是Non-Resident Speculation Tax,简称NRST。NRST适用于在2017年4月21日或之后,对在大金马蹄地区 Greater Golden Horseshoe Region(GGH)购买住宅物业的海外买家,征收15%的海外买家税。
  • GST/HST tax rebate for newly purchased house to live in or rent out

    新买房GST/HST退税分为两种,一种是出租房退税 (GST/HST New Housing Rebates, 简称 NHR), 而另一种是自住房退税 (GST/HST New Residential Rental Property Rebates, 简称 NRRPR)。
Go to full site