A real estate investor purchases a new condominium directly from a builder for $450,000 in Ontario. What GST/HST applies to this transaction?
Correct Answer
D) 13% HST with a new housing rebate available
New homes in Ontario are subject to 13% HST, but buyers may be eligible for the new housing rebate which can provide significant tax relief. The rebate amount depends on the purchase price and whether it's used as a primary residence.
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A real estate investor owns a rental property that they purchased 5 years ago for $300,000 and sells for $450,000. What portion of the $150,000 capital gain is subject to income tax?
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A taxpayer owns two properties: their principal residence worth $800,000 and a cottage worth $600,000, both purchased for $400,000 each. If they must sell both properties in the same year, what is the optimal tax strategy?