What is the new home HST rebate threshold for federal GST portion in Canada?
Correct Answer
C) Available on homes up to $350,000 with partial rebate to $450,000
The federal new home GST rebate provides a full rebate on homes up to $350,000 and a partial rebate that phases out completely at $450,000, helping to reduce the tax burden on new home purchases.
Why This Is the Correct Answer
Option C correctly states the federal GST portion of the new home HST rebate structure in Canada. The rebate provides full coverage for homes valued up to $350,000, then gradually phases out with partial rebates available until the home value reaches $450,000. This two-tier system helps make homeownership more affordable for first-time buyers while providing some relief for moderately-priced homes.
Why the Other Options Are Wrong
Memory Technique
Exam Tip for Real Estate Taxation
Common Mistakes to Avoid on Real Estate Taxation Questions
More Real Estate Taxation Questions
In Alberta, property taxes are primarily used to fund which level of government services?
Does Alberta charge a provincial land transfer tax when purchasing real estate?
In Ontario, who is responsible for paying the land transfer tax when a property is purchased?
A Toronto resident owns two properties: their principal residence worth $800,000 (purchased for $400,000) and a cottage worth $500,000 (purchased for $300,000). If they sell both properties in the same year, what is their total taxable capital gain?
What is the primary purpose of municipal property taxes in Canada?
- → 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?
- → A first-time buyer purchases a $450,000 home in Ottawa, outside the City of Toronto. Which land transfer tax relief can they claim?
- → Which type of real estate transaction is generally exempt from GST/HST in Canada?
- → A first-time home buyer signs an agreement in May 2026 to buy a newly built home in Ontario from a builder for $450,000 before tax, to live in as a primary residence. If all conditions are met, what is the most HST that can be rebated under the federal and Ontario rebates combined?
- → A buyer purchasing a $2 million commercial property in Alberta asks what provincial land transfer tax will be due on closing. What is the correct response?
- → Under the Income Tax Act, what is the principal residence exemption?
- → Sarah bought an investment property 3 years ago for $400,000 and sells it today for $550,000. What amount will be subject to capital gains tax?
- → Under Ontario's Assessment Act, how often does the default schedule call for property to be revalued for assessment purposes?
- → A developer purchases a property for $2,000,000 in Alberta, subdivides it, and sells individual lots. The total sales revenue is $3,500,000, with development costs of $800,000. How will this transaction likely be taxed?
People Also Study
Real Property Law
60 questions
Contracts & Agreements
60 questions
Agency & Professional Ethics
60 questions
Mortgage & Real Estate Finance
60 questions