HST on a flip - do you...

[David Slater]

Pay HST or not? We are looking a different properties to flip. Our investor has come back saying his accountant recommended to walk away as the post reno sale will be subject to HST substantially hitting his (and our) bottom line.For those that have been involved in flips, have you been subject to HST and if so - why/when? I believe the magic number is 90% of the property renovated triggers HST but in doing some research it seemed a little subjective. E.g. If the the exterior structure is not touched - how does that factor in? If the basement is not reno'd. etc.

In my research and learnings (courses, videos, etc) I have never seen anyone factor in HST on their calculations when looking at a property.

Would be great to get input from both renovators and investors on this.

One site/article that I thought was quite detailed is https://www.bakertilly.ca/en/btc/publications/indirect-taxalert-are-sales-and-renovations-of-used-residential-house. 

Thanks.