Need some advice

[dale7637]

I have a 1/4 section that I own personally. It is currently rented out to a farmer in the area.
It just came time to pay up the years rent. Said farmer wants an invoice with gst added into the rental price.

I am no financial whiz, so how do I go about this? Do I just write an invoice with gst added on and wing it? Or do I have to get a gst number?

The cheque is in hand, just need an answer on how to do this.. Apparently accountants aren't open this time of night....

Thanks

[hal53]

I have a 1/4 section that I own personally. It is currently rented out to a farmer in the area.
It just came time to pay up the years rent. Said farmer wants an invoice with gst added into the rental price.

I am no financial whiz, so how do I go about this? Do I just write an invoice with gst added on and wing it? Or do I have to get a gst number?

The cheque is in hand, just need an answer on how to do this.. Apparently accountants aren't open this time of night....

Thanks
you need a GST number if you are charging it, you are effectively the Gov't.s tax collector....
edit is he paying you personally?, or do you have a company set up?

[KGB]

You can apply for the GST number if your annual sales totals over $30,000. Only after that number you can start collecting GST. If your rent is less than that, then no tax needs to be collected. You can just buy a receipt book from Staples and write him a receipt.

[norwestalta]

Might want to make sure gst is supposed to be charged. I think this might be exempt.

[Mister Muskeg]

[QUOTE=dale7637;2715132]I have a 1/4 section that I own personally. It is currently rented out to a farmer in the area.
It just came time to pay up the years rent. Said farmer wants an invoice with gst added into the rental price.

Looks to me like the Farmer wants to keep the price "the same" when saying GST included. He will then claim the GST so in reality it's 5% cheaper for him.

Don't do it unless you have a GST number as previously mentioned is my advice. I deal with GST everyday but am no expert. A very quick 2 minute phone call to your accountant will settle things abruptly.

Farmers....LOLOL

[dale7637]

you need a GST number if you are charging it, you are effectively the Gov't.s tax collector....
edit is he paying you personally?, or do you have a company set up?

He's paying me personally, not setup through a company of any sort.

Thanks for the advice everyone.

[cowmanbob]

I have to pay GST on my rented land.

[coreya3212]

Ya he wants it 5% cheaper by claiming he paid gst when he didn't. If he is audited, you will be busted. No advantage for you.

[dale7637]

I see the angle he is playing now.

Thanks for the heads up guys, I will set him straight in the morning.

[TBark]

Keep his 5%.
It's yours as you are under $30k in goods and services sold.
He just wants to keep his books straight.

My quarter renter pays me by cheque every November, 1/3 of bale value, no invoice by me.
Not sure why he hasn't mixed GST into the deal.

TBark

[Immigrant]

You don't have to charge GST. And he wont be able to claim GST. He can still claim the expense, and you would have to declare the income.
You are lucky you got paid. One guy owes my $4000 from last years rental. Agreement said payment to take place on Nov 1. His excuses so far are:
I was at your house but no one was there!
I was on my way to you but realized I had my wife's cheque book
I ran out of cheques, waiting for some more
You said you were coming to pick up the cheque??
I mailed the cheque last week!!
How much do I owe you again?
I am waiting for someone else to pay me before I can pay you

[Dr. Phil A]

Keep his 5%.
It's yours as you are under $30k in goods and services sold.
He just wants to keep his books straight.

My quarter renter pays me by cheque every November, 1/3 of bale value, no invoice by me.
Not sure why he hasn't mixed GST into the deal.

TBark
No gst on feed. He is.just buying your hay.