GST or PST sales tax rebate

Novi · 02-01-2007, 05:32 AM

There is an interesting discussion going on in the "RVing on a Budget" section. USA RVers get different tax deductions than we Canadians do. In Canada did you know that if your RV engine runs on duel fuel, ie propane and gas you can get out of paying PST?? If you use your RV in your business, even if it is a home based business you can get your GST rebated back to you. But you have to be registered in the GST programm. You can also use the depreciation on the RV as a tax deduction relative to the portion that it is used in the business. There may be others also but those are 3 that I know of to help reduce the cost of buying and owning an RV.

Novi · 02-01-2007, 05:32 AM

There is an interesting discussion going on in the "RVing on a Budget" section. USA RVers get different tax deductions than we Canadians do. In Canada did you know that if your RV engine runs on duel fuel, ie propane and gas you can get out of paying PST?? If you use your RV in your business, even if it is a home based business you can get your GST rebated back to you. But you have to be registered in the GST programm. You can also use the depreciation on the RV as a tax deduction relative to the portion that it is used in the business. There may be others also but those are 3 that I know of to help reduce the cost of buying and owning an RV.

PhilnJune · 02-01-2007, 06:00 AM

Thanks Novi, it would be nice to be able to get those deductions, also if you own the RV and lease it back to your company you can get some really good deductrions as well, or so I am told.

brad03ca · 02-01-2007, 06:08 AM

Good thread...one has to be a tax lawyer to get the inside scoop on these deductions. not wanting to get

, I'd just like to say even US home tax deductions compared to ours...are astronomical.

..But thats another thread.

Novi · 02-01-2007, 07:50 AM

Your right Brad they still get interest deductions on their morgages, BUT we have a much better capital gains advantage on the sale of our homes. It probably evens things out although I have never sat down and figured it out. I didn't know about the lease back tax advantages but that is another good idea.

brad03ca · 02-01-2007, 08:00 AM

My nephew moved to Texas last year, he was telling me some of the de-ductions he gets...Wow! All states my not be the same but the things he was telling me...all I can say is Wow!

Little Kopit · 02-01-2007, 09:18 AM

Having moved the other way some 37 years ago. I remember my surprise at how short the Canadian tax forms are. I can't imagine the US ones have gotten shorter. Sure you can find all kinds of tax deductions. Back in 1968 I got us a $900 tax rebate over an accident, but oooooooooh, owwwwww, ouch did I have to work for it. Talk about documentation to the nth degree!!!!

To the point, they may have all these possible deductions as a response to this lobby or that lobby, but do you think it really pays. Given 300 mil population in the States, how much money do they spend administering this complex system?

Novi · 02-01-2007, 09:53 AM

I think probably the biggest savings in buying an RV, whether it is tax savings or deductions, is to buy it at least 3 years old. I read that the depreciation rate for a new RV is, 18% the 1st year, 12% the 2nd, and 10% the 3rd then 8% for several years . I have calulated whether these rates are accurate several times by trying to determine what a 3 year old RV should be selling for and they are reasonably accurate. There are variables for example what extra accessories are on a unit. But it seems to work well.

Novi · 02-02-2007, 04:08 AM

Just for the fun of it I checked the percentages in my previous post against what the local dealer is selling a 2003 35U Suncruiser in London. In 2003 it cost 160,000.00 + tax = $184,000.00. So a MH that cost 160,000 in 2003 should sell around 95,000 this year, 4 years old. The selling price of the same MH right now in London is $94,500.00. So it would appear the dealer has a reasonable price on it.

The Shadow · 02-02-2007, 06:53 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by brad03ca:
My nephew moved to Texas last year, he was telling me some of the de-ductions he gets...Wow! All states my not be the same but the things he was telling me...all I can say is Wow! </div></BLOCKQUOTE>

Brad, did he tell you about his property taxes too. With no state income tax in Tx they have very steep property taxes I'm told by people living there.

I have a cousin here in Florida who is 64 years old (our fathers were brothers and mothers were sisters and we are same age - born in same hospital 45 days apart) and his health insurance has been costing he and his wife over $7000 a year with a $5000 deductible.

One simply can't cherry pick these items as it is necessary to look at the entire enchilada. Last night one of my sons sent me a link to a real estate listing in suburban Detroit (he lives in Windsor and works in Detroit). The house was 3100 sq ft and the property taxes were over $11,000. They were asking $600,000 for the house (he had guessed $350k before checking the listing).

Don

brad03ca · 02-02-2007, 07:19 AM

Hello Don...what you say is true, I only know what he told me..
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> Brad, did he tell you about his property taxes too </div></BLOCKQUOTE>

We didn't go into much detail really, but what he did say sounded good. maybe what he did tell me was some what... selective..