Real Estate

How To Calculate HST On New Homes

  • Last Updated:
  • Sep 30th, 2019 4:18 pm
[OP]
Newbie
Mar 28, 2011
4 posts

How To Calculate HST On New Homes

Hello everyone,

Expert opinion is needed urgently. Thanks in advance to all !!

I purchased a property (GTA) from builder 3 years ago for primary residence for my parents. However due to their health they are not able to live there independently. I contacted builder to see if they can take it back from us. As expected builder refused to take it. Now I have to close the property and deal with HST.

My purchase price is $511,000 which includes $20, 000 lot premium and $5000 grade premium and INCLUDES all HST.

Can any one tell how much HST I need to pay on top of purchase price at the time of closing?
And How much we can claim back from government once we have one year lease agreement.?

Also my understanding is we have to keep it for a year at least before we sell it otherwise rebate will be clawed back
Appreciate your time.
3 replies
Newbie
May 31, 2006
56 posts
21 upvotes
Does the builder allow an assignment sale? If so, sell through assignment and you won't have to worry about closing on the property yourself.
Deal Addict
Jan 15, 2017
2622 posts
1938 upvotes
You need to contact the builder and tell them that you are planning to rent it out. They will then do an amendment and provide you with the HST amount.
Member
Dec 28, 2010
363 posts
92 upvotes
Toronto
Check out this other thread , where there is an ongoing discussion of HST. Your purchase price was inclusive of all HST, so technically, you should be able to get back whatever extra HST you pay at closing. Unless, you flip the house after closing within first year.

http://forums.redflagdeals.com/forest-h ... #p31505925

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