A commercial property investor in Ontario purchases a building for $2,000,000. The building qualifies as a substantially renovated property. What is the total HST payable, and what options does the investor have?
Correct Answer
C) $260,000 HST, but may claim input tax credits if registered for HST
In Ontario, HST is 13% on substantially renovated commercial properties, totaling $260,000. However, if the investor is registered for HST purposes (which commercial property investors typically are), they can claim input tax credits to recover the HST paid. This makes the effective HST cost zero for qualifying businesses.
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