February 17, 2012
Information courtesy of Peter Borszcz, PIHL Law Corporation - February 17, 2012
The Province announced the HST Transition rules today as the Province transitions back to the PST/ GST system on April 1, 2013. Used Residential Homes (resales) are, and remain, exempt from HST.
1. Under the current system, there is no additional rebate for new homes greater than $525,000 – Effective April 1, 2012, for homes completing prior to April 1, 2013, this rebate threshold has been increased to $850,000, meaning that the maximum rebate available (for homes worth 850k) is $42,500. This provincial portion HST rebate will also be available to secondary or vacation residences located outside the lower mainland.
2. For new homes where construction begins before April 1, 2013, BUT where possession transfers after April 1, 2013, neither HST nor PST will be payable, but rather purchasers will pay a temporary, transitional provincial tax of 2% per cent on the full house price.
3. Special Rebates will be available to home builders who commence a home prior to April 1, 2013 but where it is sold after April 1, 2013.
Peter Borszcz is a Real Estate Lawyer and Business Lawyer practicing in Kelowna, BC and a shareholder in the law firm of PIHL Law Corporation.
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