LAND TRANSFER TAX

Just a reminder about the Land Transfer Tax Refund and when it expires. This program has already been extended once and who knowswhat will happen in 1998?

In the meantime, here are the important dates to remember:

1. All Agreements of Purchase and Sale (Offers) MUST be dated and signed on or before MARCH 31, 1998.
2. The Purchaser MUST take possession of the house on or before DECEMBER 31, 1998.
3. The transfer (deed) MUST be registered on or before DECEMBER 31, 1998.

What does this mean in dollars?

Land Transfer Tax is calculated based on the Purchase Price as follows:

• Up to $55,000.00, Land Transfer Tax is 1/2 of 1%
• From $55,000.00 to $250,000.00, Land Transfer Tax is 1% minus $275.00
• From $250.000.00 to $400,000.00, Land Transfer Tax is 1-1/2% minus $1,525.00
• Anything over $400,000.00, Land Transfer Tax is 2% minus $3,525.00

e.g.: The purchase price listed on the Agreement of Purchase and Sale is $150,000.00. The Land Transfer Tax payable on the purchase would be: ($150,000 x 1%) - $275.00 or $1,225.00

N.B. These figures are based on the person purchasing the home being a Canadian resident. Further the government taxes are subject to change.

This could mean significant dollars to you!!!

Be careful and happy house hunting!