Real Estate

Cashback = land transfer tax

  • Last Updated:
  • Sep 5th, 2020 7:42 pm
[OP]
Newbie
User avatar
Apr 11, 2019
22 posts
13 upvotes
deal_with_singh wrote: OP - I highly suggest you speak to your accountant on this. Based on the questions you're asking, you're going to get yourself into trouble, and I say this as both a RE agent and an Accountant myself - there are records you need to keep in case the CRA comes knocking at your door. Do not just hand your clients cash, and paying for things like Land Transfer tax can just get messy.

I also don't understand why you brought up before tax/after tax. There is no HST on Land Transfer tax....
thx, that's exactly what I'll do.
Deal Fanatic
Jul 3, 2011
5768 posts
2931 upvotes
Thornhill
gospodar wrote: As a real estate agent, instead of offering clients (buyers) cachback, can I pay land transfer tax for them and deduct it as expense later?
You can expense any legitimate expense but I'm curious...

What is the purchase price amount that would be so low that it prompts you to want to pay the land transfer tax which is a percentage of the purchase price rather than a rebate which is a percentage of the percentage of the purchase price?
[OP]
Newbie
User avatar
Apr 11, 2019
22 posts
13 upvotes
licenced wrote: You can expense any legitimate expense but I'm curious...

What is the purchase price amount that would be so low that it prompts you to want to pay the land transfer tax which is a percentage of the purchase price rather than a rebate which is a percentage of the percentage of the purchase price?
My initial question was more theoretical.

But, to answer your question - a first time buyer of a 600000 house in Burlington pays ~$4475.
Deal Fanatic
Jul 3, 2011
5768 posts
2931 upvotes
Thornhill
gospodar wrote: My initial question was more theoretical.

But, to answer your question - a first time buyer of a 600000 house in Burlington pays ~$4475.
And now that everyone has the reasoning behind the question, they can answer again.

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