Monday, February 01, 2010

$1500 extra taxes due to HST in real estate transactions in Toronto and Mississauga

HST is coming to Ontario July 1st, 2010 whether we like it or not.

The HST effectively combines the 8% Provincial Sales Tax (PST) and the 5%
Federal Goods and Services Tax (GST) for a combined 13% sales tax rate known
as the Harmonized Sales Tax (HST).

The HST will apply to a number of goods and services that are currently
exempt.

For housing in Ontario, the HST will add 8% more tax on any services related
to real estate transactions, such as real estate commissions, legal fees,
home inspections and moving costs.

It is estimated by OREA that the HST will add about $1500 in additional
taxes to the cost of the average residential real estate transaction.

It is expected that there will be a surge in sales this spring to avoid the
HST that becomes law on July 1st.

All the best!
Mark

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