For the standard federal GST/HST new housing rebate on a home bought from a builder (not the first-time home buyers' rebate), how do the price thresholds work?
Correct Answer
D) Full rebate up to $350,000, phasing out to nil at $450,000
Under CRA Guide RC4028, the full rebate (36% of the GST or federal part of the HST, up to $6,300) applies at $350,000 or less, a reduced rebate applies between $350,000 and $450,000, and no rebate is available at $450,000 or more.
Why This Is the Correct Answer
RC4028 says that if the price is $350,000 or less the full calculated rebate applies, if it is $450,000 or more the rebate is nil, and if it falls between the two a reduced rebate is calculated. That is a full rebate to $350,000 phasing out to nil at $450,000.
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- → In Ontario, what is the standard Land Transfer Tax rate for a residential property purchase of $400,000?
- → Which of the following best describes when land transfer tax is typically paid?
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