Real Estate

Is land transfer tax based on purchase price before credits and adjustments?

  • Last Updated:
  • Mar 20th, 2018 4:14 pm
[OP]
Sr. Member
User avatar
Feb 12, 2013
837 posts
95 upvotes

Is land transfer tax based on purchase price before credits and adjustments?

Moving into a condo I purchased soon and have two credits that will be on the statement of adjustments at closing. Will the discounts be factored in to reduce the purchase price, lowering land transfer tax?
8 replies
Sr. Member
Sep 9, 2014
603 posts
562 upvotes
Vancouver
When we bought a condo a couple of years ago, the GST was calculated on the price before adjustments. So I imagine it's the same for the land transfer (was a first time home buyer so I didn't pay it)
Deal Addict
Nov 13, 2013
3052 posts
1738 upvotes
Ottawa
I guess it depends on what the credits were for. If you got $5k off the purchase price as some kind of promotion I think that would come off the purchase price at least that is my experience of these launch day promotions. A credit on upgrades would be a different story.
Deal Addict
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Mar 14, 2006
4398 posts
807 upvotes
it should only be based on purchase price before HST. unless your purchase price was amended due to credit, i do not see a reduction of land transfer tax. the amount would be really insignificant anyways.
Banned
Mar 4, 2018
40 posts
52 upvotes
Markham
mingyang wrote: it should only be based on purchase price before HST. unless your purchase price was amended due to credit, i do not see a reduction of land transfer tax. the amount would be really insignificant anyways.
HST is not applicable on properties for residential use.

HST is required on commercial properties only.
Deal Addict
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Mar 14, 2006
4398 posts
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Sellonkijiji wrote: HST is not applicable on properties for residential use.

HST is required on commercial properties only.
i read as that OP purchased a pre-construction condo. ie if the condo purchase price 500k then land transfer tax is based on ~442k. they cannot tax on tax.
in this example, the land transfer tax will be $10,630 assume not first time buyer.
Land Transfer Tax: $10,630
Provincial: plus
$5,315
Municipal: plus
$5,315
Deal Expert
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Jul 30, 2007
31270 posts
17843 upvotes
Toronto
If you are buying new from the builder, the Ontario Land Transfer Tax is calculated on a price which is net of HST and therefore the Ontario Land Transfer Tax will be slightly less for a new home than for a resale home with the same price.

http://www.homelegalcost.com/ltt.asp

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