Short-term tenants per night/total tenants. Questiull 20 Consider a logging company which clear cuts all of the forests it owns so that it can increase its sales. If a term is defined in the Act, the full definition is given in Section 1.5, Definitions, of the GST/HST Memoranda Series. Some economists are of the opinion that basically there are only two factors of production—land and labour. 43. 22. Note: An entire property owned by an individual may qualify as a residential complex even if a portion of the property is used for the purpose of earning income from a business, as long as the property is used primarily (i.e., more than 50%) as a place of residence by the individual, a related individual or former spouse. In the above example, soil, tractor, tools and farmer’s services are primary inputs because they render services only whereas seeds, manure, water and insecticides are secondary inputs because they get merged in the commodity for which they are used. In cases where the mobile home (newly defined) includes a supply of land by way of lease, licence or similar arrangement, and the time period of the lease, licence or similar arrangement spans April 24, 1996, the supply of the land is treated as two supplies: one up to and including April 23, 1996, and a second that extends after that day. 29. 41. Instead, it gets treated as a completely separate asset purchase and is depreciated over its useful life just like other fixed assets. Real estate consists of the physical structures and infrastructure that accompany the land. All Things Considered. To be considered an individual's place of residence, the place should be used for purposes of habitation or dwelling, but would not normally include an abode of a transient nature. For example, for producing wheat, a farmer uses inputs like soil, tractor, tools, seeds, manure, water and his own services. Thus, entrepreneur ship is a trait or quality owned by the entrepreneur. Land can include anything that's on the ground, which means that buildings, trees, and water are a part of land as an asset. * Where the land is located. A residential condominium unit is not considered to be a single unit residential complex. For the remaining days of the year, the rooms are expected to be vacant. (b) Factors which indicate that a place is a person's place of residence and not being used for transient purposes include: (c) The determination of place of residence is a separate issue from that of whether an individual is a “resident” or “non-resident” of Canada. Land useis the function or functions that humans apply to the land available to them. The Act applies to the first supply using the earlier definition of mobile home, and to the second supply using the new definition. Depending on its type, an improvement may increase the value of real estate greatly. After the complex is completed, and before he can move into it, he learns that he is being transferred from Ottawa to North Bay. On the land where the trees once stood there is erosion which flows into streams killing all … This initial section of 19.2, Residential Real Property, examines terms that are key to interpreting the provisions of Part IX of the Excise Tax Act (the Act)—the goods and services tax (GST) and harmonized sales tax (HST)—that apply to residential real property. Vehicles designed for recreational use; park model trailers. The definition of “residential complex” excludes a hotel, motel, inn, boarding house, lodging house or similar premises from being classified as a residential complex provided that “all or substantially all of the supplies of residential units in the building by way of lease, licence or similar arrangement are, or are expected to be, for periods of continuous possession or use of less than 60 days”. 42. the person has an interest in the property on which the complex is situated and carries on or engages another person to carry on the construction of the complex or addition; the person has an interest in the complex and carries on or engages another person to carry on. The following illustrates the use of different methods to determine the status (hotel or residential complex) of the lodging house: Short-term daily revenue/total daily revenue, Short-term total revenue/total revenue (1 yr. period), = (300 × $50)/[(300 × $50) + (200 × $30)]. Excluded from this concept of subgroup is a group that is defined by a unique characteristic not generally found in the public at large, e.g., employees or shareholders of a particular company.). The accommodation. Use of the place for an appreciable period of time may, for example, include a specified number of days at a specified time of the year where such use recurs over a predetermined number of years (such as a time-share arrangement or seasonal use of a cottage). Land is a passive factor whereas labour is an active factor of production. A residential complex is that part of a building in which one or more residential units are located, together with. Land suitability is the fitness of a given type of land for a defined use. The resort consists of four cottages which are rented to the general public for short-term stays, i.e., less than 30 days, from the first of May to the end of September each year and which are closed for the remainder of the year. Evidence of the individual's physical presence (for example, personal belongings or furniture) should be sufficient. These residential complexes, commonly known as bed and breakfast establishments, may qualify for a new housing rebate provided the other requirements under the appropriate section are satisfied. Buildings C. Growing trees D. Farm Equipment. Application of residential complex to hotels, Substantial Renovations and the GST/HST New Housing Rebate. In this case, each of the four cottages rented to the general public for short-term stays qualifies as a “hotel” or similar premises and are thereby excluded from the definition of “residential complex”. The uniqueness of land and its inability to be substituted is known as a. Nonhomogenity b. Scarcity c. Permanence of investment d. Nonheterogenity 21. Note that the guidelines and requirement must be applied to each cottage—the definition of “residential complex” refers to a “building”. Park model trailers are not considered to be mobile homes within the definition of subsection 123(1) since they are not designed to be placed or installed on a foundation as required in the definition. For example, the exemption in paragraph 6(a) of Part I of Schedule V with respect to residential accommodation requires that the accommodation be supplied by way of lease, licence or similar arrangement for purpose of its occupancy as a place of residence or lodging by an individual where the period throughout which continuous occupancy of the complex or unit is given to the same individual under the arrangement is at least one month. 6. It refers to all of the laws in force within a country or region, including statute law and case-made law.. Look up law of the land in Wiktionary, the free dictionary. Primary inputs render services only whereas secondary inputs get merged in the commodity for which they are used. In this case, Jim is not considered to be a “builder” under the Act because he built the home otherwise than in the course of a business or an adventure or concern in the nature of trade. An entrepreneur is a person who organises the other factors and undertakes the risks and uncertainties involved in the production. In addition, the legislation may dictate that additional requirements be considered when determining an individual's place of residence. Market Value: A … If the test is applied on a prospective basis and covers a reasonable period of time (a full year), the resulting determination will not need to be revised unless actual operations turn out to be materially different from those foreseen. Gst/Hst Rulings centres month, in the production to paragraph ( c of! Of housing rebates, see the following is an improvement EXCEPT: a this individual flies to Vancouver at end... 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