Under Ontario's Land Transfer Tax Act, which transaction would be exempt from land transfer tax?
Correct Answer
C) Transfer between spouses due to marriage breakdown
Under R.R.O. 1990, Reg. 696 under the Land Transfer Tax Act, the Act does not apply to a conveyance between spouses or former spouses made under a written separation agreement or a court order. The other transfers are taxable, although a first-time buyer may receive a refund of up to $4,000, which is a refund rather than an exemption.
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