REAL ESTATE TRANSACTIONS: LAND TRANSFER TAX + HST
Windows Mac Tablet
• 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 [email protected]
Garth Steele CPA, CAAudit + Indirect Tax [email protected]
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
Windows Mac Tablet
TWEET QUESTIONS AND COMMENTS TO @WELCHLLP
Garth Steele CPA, CAAudit + Indirect Tax [email protected]
Sybil Johnson-AbbottCounsel, Soloway Wright [email protected]
Featuring Special Guest:
