Buying property......
02-25-2005, 09:27 PM
#1
1000 Watt CAFz'r
Thread Starter
Join Date: Nov 2000
Posts: 1,020
I'm wondering if anyone can answer this question before I call a realtor tomorrow.
If you purchase an empty lot, do you have to pay tax on the selling price? I know that you pay property tax after you own it, but do you have to pay gst/pst on the selling price of the lot?
If you purchase an empty lot, do you have to pay tax on the selling price? I know that you pay property tax after you own it, but do you have to pay gst/pst on the selling price of the lot?
02-26-2005, 10:21 AM
#5
50 Watt CAFz'r
Join Date: Mar 2002
Posts: 250
Save on one of the taxes by buying used....or even nearly new houses. If you are a first time homeowner, you may be able to save on the property transfer tax (typically 1%) in some provinces. I know that BC and a few other provinces have this program.
Dave
Dave
02-27-2005, 10:45 PM
#9
1000 Watt CAFz'r
Join Date: Sep 2001
Posts: 1,120
Is it a re-sale lot or are you buying in a newly created subdivision? Newly created lots GST applies.
If it's a resale and the GST has already been paid on it by a previous purchaser then no GST should apply. A good example of this would be an individual who planned to build, bought the lot, paid GST, but then for whatever reason decided not to go ahead and build.
But beware, 'cause sometimes new home builders buy lots and then decide not to build...and most defer the GST so if it's a resale from a builder then GST may apply(unless it's been paid by the original buyer already).
Also if you're buying a lot from a GST registrant GST may apply, so check out the status of the lot carefully.
If I remember correctly there may also be some GST exeption rules if the subdivision is three lots or less and the lots were created by an individual, not a corporation.
If you're not sure, ask the government. The tel # for the GST Tech experts is 1-800-959-8287.
BTW,if your total project cost is less than $450,000 a rebate will apply. (Less than $375,000 you get the max rebate, and between $375,000 and $450,000 the rebate diminishes. Above $450,000 there is no New Housing Rebate).
The good news is that with some creativity the GST can be included in the price so you don't have to pay for it out of pocket and that way you can apply the cash you have to maximize your downpayment as a percentage of the Purchase Price. A good Realtor will know how this will work so it's irrelevant weather you buy a new home, or a resale where no GST applies.
Also a point to remember is that nearly new homes where the GST has been paid the owner will want his money out...including the GST he paid, so often these type of homes are priced to reflect that reality.
Good luck!
If it's a resale and the GST has already been paid on it by a previous purchaser then no GST should apply. A good example of this would be an individual who planned to build, bought the lot, paid GST, but then for whatever reason decided not to go ahead and build.
But beware, 'cause sometimes new home builders buy lots and then decide not to build...and most defer the GST so if it's a resale from a builder then GST may apply(unless it's been paid by the original buyer already).
Also if you're buying a lot from a GST registrant GST may apply, so check out the status of the lot carefully.
If I remember correctly there may also be some GST exeption rules if the subdivision is three lots or less and the lots were created by an individual, not a corporation.
If you're not sure, ask the government. The tel # for the GST Tech experts is 1-800-959-8287.
BTW,if your total project cost is less than $450,000 a rebate will apply. (Less than $375,000 you get the max rebate, and between $375,000 and $450,000 the rebate diminishes. Above $450,000 there is no New Housing Rebate).
The good news is that with some creativity the GST can be included in the price so you don't have to pay for it out of pocket and that way you can apply the cash you have to maximize your downpayment as a percentage of the Purchase Price. A good Realtor will know how this will work so it's irrelevant weather you buy a new home, or a resale where no GST applies.
Also a point to remember is that nearly new homes where the GST has been paid the owner will want his money out...including the GST he paid, so often these type of homes are priced to reflect that reality.
Good luck!
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