Ben Sage, Moving Woodstock
Government softens impact of HST on new housing
Reprinted courtesy of CREA
The Government of Ontario is proposing two measures that will soften the impact of the harmonized sales tax (HST) on new housing. The HST was introduced in the 2009 Ontario Budget.
Under the first measure, the province proposes to enhance the new home HST rebate so that it
would be calculated as 75 per cent of the provincial portion of the HST payable on the purchase
of a new home, up to a maximum rebate of $24,000. Under the government’s initial proposal only homes under $400,000 qualified for the 75 per cent rebate.
Similar to the enhanced new housing rebate, the province is proposing a rebate for new residential rental properties. Landlords who purchase new rental homes would be eligible for the rebate, calculated as 75 per cent of the provincial portion of the single sales tax payable on the purchase of a new rental home, up to a maximum rebate of $24,000.
The province is also proposing HST transitional rules for new housing. Generally, as part of the
transitional rules, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
For more information on the HST – click HERE
There you go – buy your new house before June 18, 2010 and save!
I have been successful helping clients buy, sell, or lease residential, commercial, or investment properties in the Woodstock, Ontario area since August of 2007. With technical experience ... Read More...