The HST and How It Affects Buying or Selling Real Estate In B.C.
Many consumers are unclear as to how the HST affects their home purchase or sale. Here is a short guide on how HST will affect you when purchasing or selling your Kamloops home.
The Home Seller:
• You will have to pay HST on any of the goods and services that you would have had to pay GST on before like legal fees and commissions.
• For all resale homes, the buyer will not pay HST when purchasing your home. Buyers may find it more appealing to purchase previously owned homes to avoid paying the HST.
The Home Buyer:
• Like the home seller, you will have to pay HST on any goods and services like your legal fees, home inspections, etc.
• When purchasing a previously owned home, you will not pay HST on the sale price.
•If you are are purchasing a brand new home the HST will affect your sale price, with that said, you are eligible for rebates depending on the value of the home.
See the table below for the rebate rates (rebates are for homes that are intended for use as a primary residence):
For further information about HST click here.
To view the Ministry of Finance Tax Information Notice Click Here.