Posted on 21. March 2010 04:53 by qbettyj
The HST will take effect in July 2010 as scheduled. This will affect the cost of real estate transactions.
The tax will apply to many previously tax-free services, incuding: home inspection fees, real estate commissions, legal fees, home appraisal moving costs and mandatory home energy audits. The Ontario Real Estate Association estimates that the HST will add almost $1500 in tax to a real estate transaction.
A brand new residential home from the builder, never having been occupied, will be subject to HST. A substantially renovated used residentail dwelling would also be charged this tax.
Items on an offer that were not subject to tax or PST will now be. For example, under the new regim, buying a house where the appliances are included will result in additional tax. Consequently, words like: "Fridge, stove, washer, dryer" will have new implications and will attract the new higher tax. Services previously exempt from PST such as utilities, home renovation labour, landscaping, snow removal and many other services will now be increased.
If you are thinking about selling your home, your home needs to be on the market now and close by June 30, 2010 in order to save on HST commisisons.
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