A buyer purchasing a $2 million commercial property in Alberta asks what provincial land transfer tax will be due on closing. What is the correct response?
Correct Answer
D) Alberta has no land transfer tax; Land Titles registration fees apply instead
Alberta does not levy a land transfer tax, unlike Ontario (provincial tax plus Toronto's municipal tax) or British Columbia (Property Transfer Tax). The charges on registering the transfer are Land Titles registration fees, so no percentage-of-price transfer tax is payable on this $2 million purchase.
Why This Is the Correct Answer
Alberta does not impose a provincial or municipal land transfer tax. The buyer pays Land Titles registration fees when the transfer is registered, not a tax calculated as a percentage of the price.
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A married couple owns two properties: their principal residence worth $800,000 and a cottage worth $400,000. They have designated their principal residence appropriately. If they sell both properties in the same year for gains of $200,000 and $100,000 respectively, what is their total taxable capital gain?
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A non-resident of Canada sells a vacant Ontario lot, held as capital property, for $900,000; it cost $600,000. The buyer knows the seller is a non-resident, and no clearance certificate has been issued by closing. Under s. 116 of the Income Tax Act, how much is the buyer liable to remit on the seller's behalf?