Real Estate

Land Transfer Tax calculation

  • Last Updated:
  • Aug 25th, 2021 12:52 pm
[OP]
Newbie
Jan 4, 2008
77 posts
34 upvotes
Scarborough

Land Transfer Tax calculation

I purchased a new built home in Whitby, ON. The purchase price is $999,990 and on schedule H of the purchase agreement the builder agreed to give a $25,000 credit on closing.

I understand that I will pay $969,990 as my final purchase price but for land transfer tax calculation, should the $30,000 reduce the cost price?
2 replies
Deal Addict
Mar 10, 2014
2375 posts
2417 upvotes
What ever the AP&S price is listed is what you need to pay land transfer tax on. If they are giving you a credit on closing, that sounds like a separate transaction. Whatever the actual purchase price listed on the agreement is what you pay tax on. You need to go back and ask them to amend the agreement to reflect the actual purchase price. Otherwise, the lawyers will just assume that is the final price.

If you are stating a credit of $25,000, the difference is $500

$999,900 => $16,473
$974,900 => $15,973
[OP]
Newbie
Jan 4, 2008
77 posts
34 upvotes
Scarborough
Thanks. I thought my lawyer would review the statement of adjustment and add upgrade costs and deduct the credit then pay the LTT on net price. I guess not.

Thanks for the explanation!

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