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Brand new never lived in re-sale condo with "NO GST, ALREADY PAID." Careful!


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#1 MarkoJ

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Posted 11 February 2019 - 10:30 AM

With all the new projects coming to completion in combination with spec tax and other factors I am seeing a lot of brand-new re-sale units coming to market, with advertising along the lines of "No GST, Already Paid." If a unit has been left unoccupied, it is still considered new upon resale of the unit. The federal government considers this transaction a transfer of unoccupied inventory so GST would be payable upon the resale transaction.

 

As a seller super important to consult your accountant on this matter and as a buyer SUPER important your REALTOR® drafts the contract correctly so you don't end up with a GST bill.

Don't fall for the trap of "seller paid the GST two weeks ago when he or she completed on the unit, so it can't possibly by payable again."

 

 


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#2 Promontory Kingpin

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Posted 11 February 2019 - 06:11 PM

With all the new projects coming to completion in combination with spec tax and other factors I am seeing a lot of brand-new re-sale units coming to market, with advertising along the lines of "No GST, Already Paid." If a unit has been left unoccupied, it is still considered new upon resale of the unit. The federal government considers this transaction a transfer of unoccupied inventory so GST would be payable upon the resale transaction.

As a seller super important to consult your accountant on this matter and as a buyer SUPER important your REALTOR® drafts the contract correctly so you don't end up with a GST bill.
Don't fall for the trap of "seller paid the GST two weeks ago when he or she completed on the unit, so it can't possibly by payable again."

Occupy is likely a loose definition...

If the seller (who has already paid gst on the unit) theoretically moved in for one month while the deal was being finalized, would that not suffice for it to become an occupied property prior to the buyer taking possession?

Edited by Promontory Kingpin, 11 February 2019 - 06:16 PM.


 



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