Preparing for an HST Audit of a Custom Home Build
As tax lawyers in North York | Toronto, we understand that building a custom home can be an exciting and rewarding experience. However, if you're not properly prepared, it can also be a stressful one. One thing that homeowners often overlook is the possibility of an HST audit. To avoid any unexpected surprises, it's important to be prepared. Here's a checklist of things to do to help you prepare for an HST audit of your custom home:
Keep accurate records: Throughout the construction process, it's important to keep accurate records of all costs associated with building your home. This includes invoices, receipts, and contracts with all parties involved.
Digitize your receipts: To avoid losing or damaging paper receipts, consider digitizing them using a scanner or a smartphone app. This will also help ensure that your records are easily accessible and searchable.
Ensure compliance with HST regulations: Ensure that you and all parties involved in the construction of your home are complying with all HST regulations.
Track your input tax credits: Keep track of all input tax credits (ITCs) that you are eligible for, such as HST paid on building materials and services. This will help ensure that you claim all the credits you are entitled to.
Hire an accountant: Hire an accountant to review your records and ensure that you are compliant with all HST regulations.
Be prepared to provide documentation: If you are audited, you will need to provide documentation to support your HST claims. This includes invoices, receipts, and contracts.
Be available for the audit: If you are audited, be available to meet with the auditor and provide any necessary documentation.
Understand your rights: If you are audited, it's important to understand your rights and to seek legal advice.
By following this checklist, you can help ensure that you are prepared for an HST audit of your custom home. And if you need legal advice or assistance with an HST audit, contact AGI Law's Real Estate Tax Lawyers in North York | Toronto for experienced legal representation and advice.