What HST can a realtor claim back?
Every time you pay HST on something for your business, from a listing sign to your phone bill, some of that tax can come back to you. The CRA calls it an input tax credit, or ITC. Realtors spend a lot on the business side, so knowing what qualifies, and what doesn't, can add up over a year.
How input tax credits work
An ITC lets a GST/HST registrant recover the GST/HST they paid or owe on purchases and expenses for their business. You claim it on line 106 of the GST/HST return. It then comes off the HST you collected, which is how you get to your net amount owing:
For a realtor, "HST collected" is the HST you charge on your commissions. ITCs are the HST you paid on your business costs.
Who can claim
Only GST/HST registrants can claim ITCs, and only to the extent a purchase is for use in their commercial activities, meaning their business and not their personal life. The CRA says you may qualify if:
- the purchase was for use in your commercial activities,
- you were registered when the HST was paid or became payable,
- you have enough documentary evidence before you claim, and
- you claim within the time limit.
Common realtor expenses
Here is how the CRA treats expenses that realtors commonly have. The CRA's list gives categories, so the realtor examples in the middle column are our own.
| Expense | Realtor examples | What the CRA says |
|---|---|---|
| Advertising | Listing photos, signs, online ads | Listed as a claimable operating expense |
| Phone and utilities | Cell phone, internet | Listed as claimable (business portion if mixed use) |
| Professional fees | Accounting, legal | Listed as claimable |
| Office supplies | Paper, printing, supplies | Listed as claimable |
| Equipment | Laptop, camera, tablet | Capital property: ITC only if used more than 50% in your business |
| Travel | Hotel, airfare, rail, car rental | Claimable, but not meals and entertainment related to travel |
| Meals and entertainment | Client lunches | You can claim 50% of the GST/HST paid in each reporting period |
| Vehicle costs | Fuel, maintenance, licence | Restrictions apply; only the business-use portion |
| Home office | Part of your home | Restrictions apply (see below) |
| Convention fees | Conferences, training events | Restrictions apply |
If a receipt shows no HST, there is nothing to claim on it. Not every purchase carries HST.
When a purchase is partly personal
If you use something for both business and personal purposes, you can generally claim only the part that relates to your business. The CRA says the way you split it must be "fair and reasonable" and used consistently through the year.
- Vehicles: you can claim only the business-use portion of fuel, maintenance and licence costs. The CRA points to its Automobile Benefits Online Calculator for working out the percentage.
- Equipment: for capital personal property like a computer, an ITC is available only if you use it more than 50% for your business.
- Home office: the CRA says an ITC is available only if the space is your principal place of business and you use it 90% or more to earn business income.
What your receipt needs to show
You need documentary evidence before you can claim, and what it has to include depends on the amount. According to the CRA:
| Purchase amount | The receipt should show |
|---|---|
| Under $100 | The supplier's business name, the invoice date, and the total amount |
| $100 to $499.99 | All of the above, plus the GST/HST amount (or a statement that it is included) and the supplier's GST/HST registration number |
| $500 or more | All of the above, plus the buyer's name, a description of what was bought, and the payment terms |
The CRA also allows reduced requirements in certain cases, such as employee allowances, procurement cards, and taxi or ride-sharing fares. This is why a clear photo of the whole receipt matters: faded thermal paper can lose the very details you need.
Don't wait too long to claim
Most registrants have four years from the end of the reporting period when an ITC first became available to claim it. Some larger businesses have two years. Waiting rarely helps, and finding a receipt from three years ago is hard.
Keeping it simple
- Snap receipts as you go, so you are not hunting for them at quarter-end.
- Keep meals separate from other expenses, since they are claimed at 50%.
- Keep business and personal spending apart where you can.
- Know your reporting period. See quarterly vs annual filing.
- Have your numbers ready for your accountant. See our quarterly checklist.
Never lose an ITC to a lost receipt
JiffyTax reads the HST off your receipts, sorts it into categories, and tracks HST collected and paid by quarter, so you can see what you have to claim.
⚡ Start Free — 10 Scans/MonthThis page is general information, not tax, legal or accounting advice. Whether an expense qualifies, and how much you can claim, depends on your situation, so confirm with the CRA or a qualified accountant.