Real Estate Transactions: Land Transfer Tax + HST
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Transcript of Real Estate Transactions: Land Transfer Tax + HST
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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
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Sybil Johnson-AbbottCounsel, Soloway Wright [email protected]
Garth Steele CPA, CAAudit + Indirect Tax [email protected]
Featuring Special Guest:
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• Land transfer tax calculation
• Available rebates and reductions
• HST issues in real estate
• Election for NIL consideration
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Unregistered dispositions
Land tendered for registration
WHEN IS LTT PAYABLE?
Unless an exemption can be found
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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
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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
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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.
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HST HOT TOPICS IN THE REAL ESTATE MARKET
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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
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• Kept and marketed as “short term stays”• Self Assessment ?• “Residential Complex” Definition tricky
RESIDENTIAL CONDOS UNSOLD BY DEVELOPER
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• ITC on Acquisition?• HST on Sale?• CRA GST/HST Info Sheet GI-122
HOUSES SOLD WITH SOLAR FIT PANELS
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• Section 156 ETA• Must file election since 2015• Voluntary disclosure
ELECTION FOR NIL CONSIDERATION
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TWEET QUESTIONS AND COMMENTS TO @WELCHLLP
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Garth Steele CPA, CAAudit + Indirect Tax [email protected]
Sybil Johnson-AbbottCounsel, Soloway Wright [email protected]
Featuring Special Guest: