Real Estate Income Tax and GST/HST Matters

Many measures have been introduced to provide support to individuals and address perceived abuses related to real estate transactions. Incentives newly available in 2023 include the new multigenerational home renovation tax credit and the first home savings account. GST/HST on real property continues to be challenging. Rules to treat gains on short-term residential property sales (property held for less than a year) and gains on short-term assignment sales to be business income, effective January 1, 2023, have been enacted. Some additional areas where issues can arise include accessing the GST/HST new residential rental property rebate and GST/HST new housing rebate, and the requirement to self-assess on substantial renovations.