GST and Real Estate
|When you buy a newly constructed home, condominium or town home, the entire purchase price including land is taxable. If the property is to be rented to tenants, the full 7% GST is charged on the purchase price. However, if the home is going to be your primary place of residence, it may qualify for a partial GST rebate, depending upon the sale price.
For homes costing $350,000 or less, you will receive a rebate of 36% of the GST paid, to a maximum of $8,750. That means you pay approximately 4.5% GST (not 7%) on the purchase price.
1) $150,000 x 7% = $10,500
Rebate = $8,750 x ($450,000 - Selling Price) / $100,000
1) $400,000 x 7% = $28,000 (GST)
If you buy a substantially renovated home from a builder who supplies both the land and the house as a single transaction, the same GST rebate conditions described above apply. Your REALTOR can explain how the Federal Government defines "substantially renovated."
GST and Land
The rebate would be the same as for a new home. That is, when the total value of the land and home is $350,000 or less, the rebate would be 35% of the GST paid on the building and the land to a maximum of $8,750.
When the total value of the land and house exceeds $350,000 but is less than $450,000, a proportional formula for calculating the GST rebate applies.
As with other new home purchases, GST rebates are not available for land and buildings valued at $450,000 or more when you build a house on your lot.
please note the above figures use 7% and since the GST was changed to 6% these caclulations may change, please consult your solicitor before using these calculations to ensure accuracy
Back to list of Real Estate Helpful Articles
If you have any questions or require further information, please send me an email.
Read a very detailed section about Power of Sale and Foreclosure
or go back to list of Real Estate Helpful Articles
Mississauga MLS Real Estate Properties & MLS.CA Homes for Sale | All Pages including Mississauga Real Estate Blog all maintained by firstname.lastname@example.org Copyright © A. Mark Argentino, P.Eng., Broker, RE/MAX Realty Specialists Inc., Brokerage, Mississauga, Ontario, Canada L5M 7A1 (905) 828-3434 Google First created - Tuesday, July 16th, 1996 at 3:48:41 PM - Last Update of this website: Tuesday, August 16, 2016 10:51 PM
At this Mississauga, (Erin Mills, Churchill Meadows, Sawmill Valley, Credit Mills and or Meadowvale ) Ontario, Canada Real Estate Property Internet web site you will find relevant information to help you and your family.
|You will receive valuable Real Estate information on a monthly basis - such as: where to find the 'best' mortgage interest rates, Power of Sale Properties and graphs of current house price trends. Plus, you will pick up ideas, suggestions and excellent real estate advice when you sell or buy your next home.
Read Past Newsletters before you decide