Carl Stars - Buying and Selling Your Homes » Tax Cuts for Homeowners

How to calculate Land Transfer Tax

Carl — Fri, 20 Aug 2010 17:04:10 +0000

ONTARIO GOVERNMENT LAND TRANSFER TAX COSTS

On transfers of residential real property in Ontario, Ontario Land Transfer Tax (LTT) is calculated on the purchase price (less a calculation regarding HST, if the property purchased is a newly built home). The Ontario land transfer tax is payable by the purchaser on the purchase price upon registration of a Transfer/Deed of Land in the Ontario Land Registry Office on closing based on the following upward sliding scale:

0.5% on the first $55,000 of the purchase price, plus

1.0% on the amount exceeding $ 55,000 up to and including $250,000, plus

1.5% on the amount exceeding $250,000 up to and including $400,000, plus

2.0% on the amount over $400,000.(Be aware that for non-residential properties, such as industrial or commercial real estate, there is no 2% charge since the tax rate is 1.5% for any amount of purchase price over $250,000 regardless of the total price.)

Example:
The Ontario land transfer tax on a property transferred for $200,000 is calculated as $275.00 on the first $ 55,000 (0.5% = $ 275.00), plus $1,450.00 on the next $145,000 (1.0% = $1,450.00), for a total of $1,725.00.

Tax Relief for Heritage Property Owners !!

Carl — Thu, 26 Nov 2009 20:58:26 +0000

Many Ontario municipalities have programs to provide tax relief to Heritage Property Owners. Municipalities pass by laws and can formerly designate properties of cultural heritage and interest. There are 30 municipalities that have tax relief programs. Tax relief and grants are being offered to this growing section of the real estate market. The range of savings is 10 to 40 percent .

The three Programs are : Heritage Property Tax relief measure,.Direct Cash grants for rehabilation and restorations projects, and Muncipal tax back grants.

The property must be designated from the Ontario Heritage Act:

Please note programs vary from one muncipality to another: You should for more information contact your local municipal office to see if any of these programs are in place.

Excerpts of this article Realtor Edge : Author of full article is Mr. Robert B Hulley

This summer is a posting to assist clients who may own a heritage property.

Information deemed reliable but not guaranteed.

REAL ESTATE COMMISSION TAX DEDUCTABLE

Carl — Fri, 26 Jun 2009 00:24:53 +0000

I recently attended a seminar on ” Taxation of Residential Real Estate” put on by the Oakville Real Estate Board. The speaker was Maureen Tabuchi and was sponsered by Insuranceland and Colour Tech marketing One expense often overlooked is moving expenses. You can potentially garner a huge refund providing you move at least 40 kilometers to another location. Your moving expenses might be allowable if you are employed and your new home is closer to work, you are moving closer to your self employed business. You are a full time student and moving to attend school or closer to a summer job.

Many expenses that may be deductable are as follows, packing, breaking a lease, furniture storage, insurance costs, transportation costs, up to 15 days of meals, mortgage prepayment penalties, legal fees, and REAL ESTATE COMMISSIONS ( OF YOUR OLD HOME) mortgage interest, property taxes( up to $5000 ) utility reconnections.

Please if you are planning a move over 40 km , please contact your accountant to verify the above information, and to verify the latest tax information. So you can know what you can and cannot deduct.

Home Buyers Plan

Carl — Tue, 31 Mar 2009 04:26:10 +0000

Home Buyers’ Plan (HBP)

Here is another incentive to assist people with home ownership.

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $20,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability .

Under proposed changes, for 2009 and subsequent years, withdrawals made after January 27, 2009, the maximum is increased to $25,000.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html

Information from government of Canada web site deemed accurate but not guaranteed.

Home Renovation Tax credit

Carl — Tue, 31 Mar 2009 04:18:57 +0000

The Home renovation Tax credit means you can qualify for $ 1,350.00 on renovations if they are completed by next February.

The credit will only be available for the 2009 tax year and applies to eligible expenditures of more than $1,000, but not more than $10,000, resulting in a maximum credit of $1,350 ($9,000 x 15%).

Here is the link to assist you further http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhmrnvtn-eng.html

Information from Government of Canada web site deemed accurate but not guaranteed.

First time Buyers Tax Credit

Carl — Tue, 31 Mar 2009 04:12:04 +0000

First time buyers are gettting assistance from the government. You can now qualify up to $ 750.00 towards your closing costs.

. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

3. Who is eligible for the HBTC?

An individual will qualify for the HBTC if:

they acquire a qualifying home; and
neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

For more information here is the link http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

Information from Government of Canada website Information deemed reliable but not guaranteed

Eco Energy Home – Retrofit Program

Carl — Tue, 31 Mar 2009 03:59:53 +0000

Grants and Rebates for Consumers

It’s possible to save money and save the environment.

Find out which grants and incentives fit your personal needs.

This grant Is available to owners of single family homes including detached, semi-detached and low rise multi-unit residential buildings. Property owners can qualify for a federal grant for improving the energy efficiency of their home. The maximum grant you can receive per home or multi-unit residential building is $5,000.

http://www.ecoaction.gc.ca/index-eng.cfm

Information from Government of Canada website information deemed accurate but not guaranteed.

Land Transfer Rebate Program

Carl — Tue, 31 Mar 2009 03:54:32 +0000

The Government has created a Land Transfer rebate program for First Time Buyers.

http://www.rev.gov.on.ca/english/bulletins/ltt/1_2008.html

For more information see Ontario Government Ministry of Revenue Web site. Rebates are claimed

at the Land registry Office.

Amount of Refund

The amount of the refund claimed will, if granted, offset the land transfer tax payable. The maximum amount refundable is $2,000.

Examples:

Cost of Home	Tax Payable	Tax Refund	Net Tax Payable
$100,000	$725	$725	$0
$200,000	$1,725	$1,725	$0
$300,000	$2,975	$2,000	$975

Cost of Home

Tax Payable

Tax Refund

Net Tax Payable

$100,000

$725

$200,000

$1,725

$300,000

$2,975

$2,000

$975

Information from Government of Canada website. Information deemed accurate but not guaranteed.