When is GST charged on residential real estate in Alberta?
Correct Answer
A) Only on new and substantially renovated homes, not on resales
In Alberta, GST at 5% is charged on newly constructed homes and substantially renovated homes. Resale (used) residential properties are exempt from GST. This is an important distinction for buyers, as GST on a new home can add significantly to the purchase cost.
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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?
- → 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?
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- → 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?
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- → Under Ontario's Assessment Act, how often does the default schedule call for property to be revalued for assessment purposes?
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