It is my duty to report important information regarding the real estate market and this next topic is definitely one of them.
Since the introduction of the Harmonized Sales Tax on the 1st of July this year, many consumers have not been aware of what is and what is not affected by this implementation.
Toronto Realtors are emphasising to their clients and the public that HST does not apply to resale homes.
Although the HST applies to newly constructed homes and professional services associated with real estate transactions, the purchase price of a resale home is exempt from this tax. Since resale housing was never subject to the Provincial Sales Tax or the federal Goods and Service Tax (GST), it continues to be exempt from the new HST.
In correlation, new construction of homes was previously subject to GST, meaning it now is subject to HST. The provincial government does however, provide a rebate of 75% of the PST on the first $400,ooo on new homes to a maximum of $24,000.
I, Geon van der Wyst and Properties InStyle will continue to drive home this message to all GTA home buyers. Don't forget to go to www.propertiesinstyle.com to find new listings for sale and schedule your private appointment.
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