QUESTION: My husband and I are planning to build a house here in alberta, the house will be built by a Builder. The will cost us over 600,000.00 dollars. After it is built we will sell it. Since it is a new home do we get to claim the GST. I was thinking if we open up a company for buying selling new homes,can we get the GST back or not? --------------------------------------------------------------------------- david ingram replies: The sale you are contemplating is NOT a capital gain. What you are describing is a venture in the nature of trade where you are in the business of building and selling houses even if you have only done or are contemplating one house. Since your gross sale will be over $30,000, it is mandatory that you be registered as a business and that you collect GST from whomever you sell the house to. The GST you collect is payable to the CRA. HOWEVER, you will get to deduct the GST you have paid the builder to build it. You do not have to be a limited company to do so. You and your husband will be a partnership and file a partnership T2124 form with your tax returns for the year that you sell. David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists Home office at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. 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