Confused about HST?

A new survey from Ipsos Reid commissioned by the Ontario Real Estate Association says over half of Ontarians have the wrong idea about this tax. It seems that the majority mistakenly believe that HST applies to the full purchase of a resale cottage or home. That misconception is sure not helping the housing market nor the Ontario economy, with Buyers thinking the cost of a resale is actually thousands of dollars higher than it actually is. OREA is requesting the Ontario government launch a public awareness campaign to educate taxpayers and end the confusion.

HST HIGHLIGHTS

• ·        Purchasers of newly constructed homes under $400,000 are not subject to the tax. Buyers of new homes valued between $400,000 and $500,000 could claim a proportional rebate on the provincial portion of the HST up to a maximum of $24,000.
• ·        HST is not applicable to the sale of a re-sale home or cottage
• ·        Real estate commissions paid by the Seller are subject to the 13% HST
• ·        Lawyer's fees are also subject to the 13% HST
• ·        Moving company fees and home staging fees are also subject to the harmonized sales tax.