*The Commerce Journal>>>Canada Taxes

Does GST apply to sale of a rental property (previously a principal residence)?

This rental property (a condominium unit) has been rented out for 5 years, but before that, it had been lived as a principal residence by my parents (now deceased) for about 10 years.

I realise that GST does not apply to the residential rent, or sale of used residental property, but GST may apply to portion to used residential property converted to business use (e.g., dental office).

My question is whether rental constitutes a business, that attacts GST? And, if GST applies, will there be exemption for years being owned as a principal residence? Thanks.

I am a little confused by the second paragraph. If all you did was rent out a condo that was previously a residence, there is no GST on the property sale. There would also be no GST payable on the rent.

It gets more complicated if the rental of the unit was for commercial purposes. See link below.

If you are still unsure talk with an accountant

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