HST information on all new property purchases (Not Re-Sale) effective in BC July 01 2010

HST on all NEW properties (NOT re-sale) effective July 1st, 2010
5% GST plus 7% PST = 12% HST

*** HST applicable on all NEW properties completed AFTER June, 2010 ***

1) GRANDPARENTED
* Any pre-sale contract entered into BEFORE November 18th, 2009 that
completes after July 1st, 2010- NO HST- ONLY GST
* Any pre-sale contract entered into AFTER November 18th, 2009 that
completes after June, 2010- HST

2) HST REBATES

GST portion: maximum 36% rebate $6300 up to $350,000 ... rebate pro-rated
$350,000 to $450,000 ... NO REBATE over $450,000
example:
$350,000 x 5% = $17,500
36% rebate = $17,500 x 36% = $6300
Net GST = $17,500 - $6300 = $11,200

PST portion: maximum 71.43% rebate = $26,250 ... No rebate over $525,000
example:
$350,000 x 7% = $24,500
71.43% rebate = $24,500 x 71.43% = $17,500
Net PST = $24,500 - $17,500 = $7000 (Net same as 2% of purchase price)

TOTAL HST on a $350,000 purchase = $11,200 plus $7000 = $18,200

example: GST on $400,000
$400,000 x 5% = $20,000
rebate: $6300 x (450-400)/100 = 6300 x 50/100 = $3150
Net GST = $20,000 - $3100 = $16,850

example: HST on $525,000
$525,000 x 7% = $36,750
rebate 71.43%= $36,750 x 71.43% = $26,250
Net PST = $36,750 - $26,250 = $10,500 (Net sames as 2% of purchase price)

3) HST on Commission
* If 90% of services done before July 1, 2010- No HST
That is, listed June 1, 2010, completes July 2, 2010 ... NO HST ... ONLY GST
* if listed May 1, 2010, completes July 31, 2010 ... 2 months before July 1
and 1 month after July 1 ... 2/3 commission GST plus 1/3 commission HST

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Michael La Prairie

Michael La Prairie

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CENTURY 21 In Town Realty
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