If a corporation, who is in the business of constructed and selling house. Rent a house for sometime, and not selling because of adverse market. Is it considered as deemed sale and corporation has to assess and remit GST/HST as per Market Value of the house.
Any one help me please, any suggestion, link?
Newly Constructed Single Family House
“If a corporation, who is in the business of constructed and selling house. Rent a house for sometime, and not selling because of adverse market. Is it considered as deemed sale and corporation has to assess and remit GST/HST as per Market Value of the house”
.
So the Corporation (a GST Registrant) has constructed a house, now completed, and is reporting the house on its balance sheet as a (current) asset, since it wishes to hold it a bit before selling it, and therefore it is reporting that on S100? It may or may not have correctly claimed ITCs or it may have incorrectly claimed ITCs.
Then, it is also temporarily renting it out to a NON-RELATED and NON-ASSOCIATED (as defined) third party, earning rental income? Commercial rent? Residential/Exempt rent?
Ideally, IMHO, this question cannot be properly answered without a complete review of the actual records and documents to ensure that the tax treatment is flowing properly from all the underlying documentation, contracts and accounts.
ETA S206 might or might not apply. Or ETA S190/191
Personally, I would not like to hazard a guess, absent the file, so sorry, I cannot add anything useful.
Thank you Joe for your help. Can you let me know, any link, where I can study this in detail.
thank you so much Nezzer