When is GST/HST typically payable on a real estate transaction in Canada?
Correct Answer
C) On new construction and substantially renovated properties
GST/HST applies to new construction and substantially renovated residential properties, as well as most commercial real estate transactions. Resale residential properties are generally exempt from GST/HST unless the vendor is registered for GST/HST purposes.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Common Mistakes to Avoid on Real Estate Taxation Questions
More Real Estate Taxation Questions
What is the maximum GST/HST New Housing Rebate available for qualifying new homes in Canada?
A first-time homebuyer in Ontario purchases a new home for $450,000. What is the maximum GST/HST new housing rebate they could receive?
What is the primary purpose of municipal property taxes in Canada?
In Ontario, who is responsible for paying the land transfer tax when a property is purchased?
What GST/HST rate applies to the purchase of a newly constructed home in Ontario?
- → Under the Income Tax Act, what is the principal residence exemption?
- → Sarah purchased a rental property in British Columbia for $600,000 and sold it three years later for $750,000. What portion of her capital gain is taxable?
- → What happens to property taxes when a property is sold mid-year in most Canadian provinces?
- → In Alberta, what is the land transfer tax rate for residential properties?
- → A real estate investor owns a property that has appreciated significantly but wants to defer capital gains tax. Which strategy would be most appropriate under Canadian tax law?
- → 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?
- → In British Columbia, what is the general Property Transfer Tax rate for residential property purchases up to $200,000?
- → What is the current HST rate that applies to the purchase of a new home in Ontario?
- → Which of the following best describes when land transfer tax is typically paid?
- → What is the primary purpose of municipal property tax in Canada?
People Also Study
Real Property Law
60 questions
Contracts & Agreements
60 questions
Agency & Professional Ethics
60 questions
Mortgage & Real Estate Finance
60 questions