HST and Real Estate

Recent conversations have revealed the there is still some confusion about HST and the sale of real estate. Some members of the public think that HST is payable on the sale price of a home. There are some transactions that will require further investigation but, for the resale of a personal home, HST is not payable on the sale price.

HST is payable on legal fees, home inspection fees and commissions. So the cost of selling your home did increase marginally when HST was implemented. The cost for example on a $400,000 home would be $1600 to $1800. The same additional cost would be incurred on the purchase of a replacement resale home.

When in doubt consult an expert. you can also visit the web site for CRA to obtain general information http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html . Keep in mind that new homes, commercial, and agricultural real estate fall under different rules.

 

Doug Fraser

Doug Fraser

Broker
CENTURY 21 Millennium Inc., Brokerage*
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