I rent out a residential property. What are some tax implications, with regards to sales tax?

Allan Madan, CA
 Feb 2, 2014

Rental income is a GST/HST exempt supply. This means that you cannot charge GST/HST on rent.

Furthermore, you may incur expenses in the course of renting out your property on which you may have paid GST/HST, such as management fee, supplies, etc. Normally, you can claim this GST/HST paid on expenses as Input Tax Credits (ITCs), but since rental income is exempt, so you cannot claim ITCs either. Actually, you should not be filing a GST/HST return at all.




The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.

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