Understanding GST in Real Estate Transactions: Residential vs. Commercial and Airbnb

In this video, Vivian Lee discusses the important topic of GST (Goods and Services Tax) in real estate transactions. Understanding when and where GST applies can save you from unexpected costs and complications.

For residential real estate transactions, you typically do not need to worry about GST. This means that when you're buying or selling a residential property, GST is generally not a concern.

However, when it comes to commercial buildings, GST needs to be added. If you're dealing with the purchase or sale of a commercial property, it's crucial to include GST in your calculations to ensure compliance and avoid any surprises.

Special rules apply to Airbnb properties. In Calgary, you do not need to include GST when listing or renting out an Airbnb. Conversely, in Canmore, GST must be included. Therefore, when dealing with Airbnb properties in Canmore, you need to add the price plus GST and make sure to cross out line 2.2, which states that GST is included.

This video provides a clear explanation of these GST rules, helping you navigate the complexities of real estate transactions. Whether you're dealing with residential, commercial, or Airbnb properties, knowing when to include GST is essential for a smooth and successful transaction.