A real estate developer builds and sells a new condominium unit for $500,000. In addition to the sale price, what tax obligations apply?
Correct Answer
A) 13% HST on the full $500,000 plus land transfer tax
New home sales by builders are subject to 13% HST in Ontario on the full purchase price, and the purchaser must also pay land transfer tax on the transaction as it represents a change in ownership.
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A property owner in Toronto sells their principal residence for $800,000 after purchasing it 5 years ago for $600,000. How much capital gains tax will they owe?
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A real estate developer in Alberta sells a new condominium unit for $450,000. The purchaser is eligible for the federal GST new housing rebate. What is the maximum rebate amount they can receive?