Real Estate

Land Transfer Tax Credit

  • Last Updated:
  • Nov 2nd, 2020 5:13 pm
[OP]
Newbie
Nov 4, 2014
5 posts
North York, ON

Land Transfer Tax Credit

I purchase a place together with another person (non-spousal) (50-50%), I am the first time home buyer, the co-owner is not. Ontario Land Transfer Tax Credit is 4000$, but since I am co-owner with another person, I am eligible for 50% of the credit, 2000$. The lawyer did the rebate during closing and that amount actually went toward the cost of house.

Now we are selling the house, I believe I should get back that 2000$ because it was credited under my name as a first time home buyer, I technically used that 2000$ credit and put it toward the house. So basically I contributed extra 2000$ toward the house.

Does that make sense to anyone? The person is not agreeing with this and said that "If you didn't purchase the house you wouldn't have that 2000$ credit, we agreed to purchase the place together so you used your credit. And your name is on the house and when we made a profit we both benefit from it. You did not fork out extra 2000 out of your pocket, it was a rebate" - I'm not sure what that logic is......
1 reply
Jr. Member
User avatar
Jun 3, 2019
175 posts
153 upvotes
GTA
burgernom wrote: I purchase a place together with another person (non-spousal) (50-50%), I am the first time home buyer, the co-owner is not. Ontario Land Transfer Tax Credit is 4000$, but since I am co-owner with another person, I am eligible for 50% of the credit, 2000$. The lawyer did the rebate during closing and that amount actually went toward the cost of house.

Now we are selling the house, I believe I should get back that 2000$ because it was credited under my name as a first time home buyer, I technically used that 2000$ credit and put it toward the house. So basically I contributed extra 2000$ toward the house.

Does that make sense to anyone? The person is not agreeing with this and said that "If you didn't purchase the house you wouldn't have that 2000$ credit, we agreed to purchase the place together so you used your credit. And your name is on the house and when we made a profit we both benefit from it. You did not fork out extra 2000 out of your pocket, it was a rebate" - I'm not sure what that logic is......
Yes you should be credited with an extra 2k. Your partner in buying this home benefitted from your first time home buyer status.

Your partner should have paid his/her share of the purchase amount before any rebate was applied and your lawyer should have pointed that out.
Realtor® & Mortgage Agent

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