In Alberta, a builder sells a new home for $400,000. What is the GST amount the purchaser must pay?
Correct Answer
A) $20,000
Alberta has only GST (5%) as it does not participate in the HST system. On a $400,000 new home, the GST would be $20,000. Buyers may be eligible for the new housing GST rebate which can reduce this amount significantly for homes under certain price thresholds.
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