HST on Re-Sale Homes

Firstly, I'm not an accountant and I don't play one on TV.
HST on re-sale homes has been poorly explained by the Ontario government, and even by Revenue Canada when it comes down to possible breaks or rebates when filing your income tax return.
HST does apply to the purchase of a re-sale (not new) home, but only to services conducted in assisting the sale of that residence -- such as real estate commission, lawyer fees, property inspections, and moving costs.
Many results of public polls still indicate that a large portion of consumers think a re-sale home is HST applicable.
It is unfortunate to think that many possible home buyers are reluctant to buy thinking 13% will be added on to the agreed upon price of a house, or people who want to sell their home may still be thinking 13% will be subtracted (Plus real estate costs) from the negotiated price.
For a reasonably good explanation on tax grab watch these two videos: http://www.youtube.com/watch?v=ekQZ3vwOA6M and http://www.youtube.com/watch?v=eWWS3hrpVOU&feature=related
One of the two videos even features Sophia Aggelonitis, the Ontario Minister of Revenue, talking alongside an official from the Ontario Real Estate Association.
BRAND NEW HOMES
It's important to note that HST must apply to new homes as all the contractor products used in construction (plumbing, wiring, concrete, lumber, etc) are effected by the HST.
Don't let this stop you from buying a brand new home though as you can apply for a rebate of 40% of the HST you have paid (5.2 of the 13) at your next tax time. This rebate only applies to the first $400,000 of purchase price, but in Woodstock the vast majority of new homes are still under that level.
Again, I'm not an accountant, but I can suggest one to you for further investigation. It can be noted here, HST will apply to the sale of a business -- and that includes the sale of perhaps a 10-unit apartment building because it's deemed to be a business. Or, the sale of the family farm to a non-related purchaser. I don't chisel in concrete, but the many differences in what is applicable and what isn't applicable have clouded the picture for all.
FIRST-TIME BUYERS
As for land transfer tax, first-time buyers can claim up to $2,000 back when they submit their next income tax return. This would be approximately equivalent to paying zero land transfer tax if you bought your first home for up to $225,000.
Now that I have you thinking about buying a home, call me today at 519 537-1553.