How are input tax credits calculated when registrants purchase capital expenditures that are (1)real property and (2)furniture and fixtures?

Question

Quizplus · Accepted Answer

The Answer is For capital expenditures on real property, the GST/HST paid is eligible for an input tax credit at the time of purchase. However, if the property is not used exclusively for commercial activity, only a portion of the GST/HST is eligible for the credit. The portion is based on the extent to which the property is used for commercial activity. This is subject to a minimum rule (there is no input tax credit if the property is used 10 percent or less for commercial activity)and a maximum rule (100 percent of the GST/HST paid is eligible for the credit if the property is used 90 percent or more for commercial activity).
For most capital expenditures other than real property (capital personal property), the GST/HST paid is eligible for an input tax credit at the time of purchase. However, if the property is used 50 percent or less for commercial activity, no credit is available. Alternatively, if the property is used more than 50 percent for commercial activity, 100 percent of the GST/HST paid is eligible for an input tax credit.

How Are Input Tax Credits Calculated When Registrants Purchase Capital