real estate transactions: land transfer tax + hst

REAL ESTATE TRANSACTIONS: LAND TRANSFER TAX + HST

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• Attendees are in listen-only mode• This webinar is being recorded for future on-demand playback• Your participation represents acknowledgement that we are

recording• Tweet questions & comments to: #WelchNPO

Sybil Johnson-AbbottCounsel, Soloway Wright LLPsjohnsonabbott@solowaywright.com

Garth Steele CPA, CAAudit + Indirect Tax Partnergsteele@welchllp.com

Featuring Special Guest:

• Land transfer tax calculation

• Available rebates and reductions

• HST issues in real estate

• Election for NIL consideration

Unregistered dispositions

Land tendered for registration

WHEN IS LTT PAYABLE?

Unless an exemption can be found

HOW IS LTT CALCULATED?

Graduated Rates$0 - $55,000 0.5%55,000 - $250,000 1.0%250,000 plus 1.5%$400,000 plus** 2.0%

** where the land contains 1 or 2 single family homes

Municipal Additions?• Toronto, since 2008

Where does the tax go?• General revenues

HOW CAN LTT BE AVOIDED?

Some Examples

• Conveyance to the Crown• Leases of land of up to 50 years• Spousal transfers• Transfers to a Family Business Corporations• Conveyances from Trustees to beneficiaries• Deferrals between affiliated corporations• Butterfly transactions

Leased to purchased lands

Mixed use property (residential and non-residential)

Multiple Conveyances

Replacing Expropriated Land

WAYS TO REDUCE LTT OR THE APPLICABLE VALUE?

….. Any Rebates Available? Yes, first time home buyers.

HST HOT TOPICS IN THE REAL ESTATE MARKET

Vendors unwilling to commit to tax status

S 194 ETA Statement deems price to be tax included

Agreement of purchase and sale is key

SALE OF REAL ESTATE

• Kept and marketed as “short term stays”• Self Assessment ?• “Residential Complex” Definition tricky

RESIDENTIAL CONDOS UNSOLD BY DEVELOPER

• ITC on Acquisition?• HST on Sale?• CRA GST/HST Info Sheet GI-122

HOUSES SOLD WITH SOLAR FIT PANELS

• Section 156 ETA• Must file election since 2015• Voluntary disclosure

ELECTION FOR NIL CONSIDERATION

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TWEET QUESTIONS AND COMMENTS TO @WELCHLLP

Garth Steele CPA, CAAudit + Indirect Tax Partnergsteele@welchllp.com

Sybil Johnson-AbbottCounsel, Soloway Wright LLPsjohnsonabbott@solowaywright.com

Featuring Special Guest: