Thursday, August 12, 2010
More HST Updates
On July 1st, the Ontario government implemented the HST as part of a tax plan designed to strengthen the economy. While lots of discussion surrounds the changes – let’s cut to the chase. Here’s what people buying or selling a home need to know.
About 93 per cent of all homes sold in Ontario are not subject to an additional tax amount under the HST.
It’s important to note, the HST is not charged on resale homes. In addition it is not charged on home insurance, and mortgage interest costs.
HST is charged on:
- real estate commissions
- legal fees
- new homes (The full list of what changes and what doesn’t change is available on the website (23 languages), PDF format and for free download as a mobile application. )
New Homes Rebate
Regardless of the price of new homes purchased as primary residences,, buyers may be entitled to a rebate in respect of the provincial part of the HST of up to $24,000, ensuring that buyers of new homes priced up to $400,000 will, on average, pay no more – or possibly even less – tax than under the PST system. The effect of the rebate is that homes valued over $400,000 will be subject to the 8 per cent provincial part of the HST on the amount above $400,000.
Betty Bartusevicius, Sales Representative
Re/Max Realty Specialists Inc., Brokerage
Fine Homes In Nine Oh Five
Web Site: http://www.bettybart.com
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