A developer sells a new condominium unit in Ontario for $500,000. What is the HST amount, and what rebate might be available to the purchaser?
Correct Answer
A) $65,000 HST with up to $24,000 rebate
In Ontario, new homes are subject to 13% HST ($65,000 on $500,000). However, purchasers may be eligible for the federal GST/HST new housing rebate (up to $6,300) and Ontario new housing rebate (up to $24,000), potentially totaling up to $30,300 in rebates.
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Previous Question
A developer purchases land for $1,000,000, builds a home for $800,000, and sells it for $2,200,000. If GST/HST of $286,000 was collected from the buyer, what is the developer's taxable income from this transaction?
Next Question
A first-time home buyer in Ontario purchases a new home for $450,000. What is the total land transfer tax they would pay after applying available rebates?