http://mahmudnaqvi.com/blog Connecting Buyers & Sellers Wed, 16 May 2012 15:28:47 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 http://mahmudnaqvi.com/blog/the-new-hst-transition-rules/ http://mahmudnaqvi.com/blog/the-new-hst-transition-rules/#comments Wed, 27 Jan 2010 13:51:04 +0000 Mahmud Naqvi http://mahmudnaqvi.com/blog/?p=286 Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST).

• The HST is NOT YET IN EFFECT. The HST will come into effect beginning on July 1, 2010; however, note transition rules below.
• HST will not apply on the purchase price of re-sale homes.
• HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
• HST will apply to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.

Transitional Rules for New Housing

• Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
• The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.

More Detail Additional detail on the transition rules is available at the provincial government web site here or by calling the provincial government enquiry line at 1-800-337-7222.]]> http://mahmudnaqvi.com/blog/the-new-hst-transition-rules/feed/ 1 http://mahmudnaqvi.com/blog/anything-but-harmony/ http://mahmudnaqvi.com/blog/anything-but-harmony/#comments Thu, 01 Oct 2009 14:35:34 +0000 Mahmud Naqvi http://mahmudnaqvi.com/blog/?p=156 those buying or selling homes. The government can get away with this tax grab because consumers have not taken much action. TREB(Toronto Real Estate Board) president Tom Lebour recently wrote: “As real estate professionals, REALTORS® know how important the dream of homeownership is to Ontario families. Unfortunately, thanks to the forthcoming HST, that dream is going to become much more expensive. After July 1, 2010, every residential real estate transaction in Ontario will face a significant tax increase. Specifically, home buyers and sellers can expect to pay 8% more on legal fees, appraisals, real estate commissions, home inspection fees, moving costs and the provincial government’s forthcoming system of mandatory home energy audits. According to the Ontario Real Estate Association (OREA) Ontarians will pay, on average, an additional $1,449 in new taxes on their next residential real estate transaction. If it’s not bad enough that the new tax will increase the cost of buying a home, then consider the impact on the costs of owning and living in that home after it’s been purchased. Specifically, a HST will add hundreds, potentially thousands of dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal. Moreover, a HST will increase the cost of living with 8% more tax on gasoline, personal and professional services, meals under $4, dry cleaning, cab fares, magazine subscriptions, plane tickets, vitamins and cell phone charges.” Oppose this Tax Grab To calm down upset citizens, the government is handing out candies like ONE TIME transition cheques and income tax reductions. To save your hard earned money, write to your MPP and tell them that Ontarians do not need higher taxes on homeownership. Click here for Call for Action page or click here to send an e-mail to your MPP on this issue. ]]> http://mahmudnaqvi.com/blog/anything-but-harmony/feed/ 0 http://mahmudnaqvi.com/blog/changes-proposed-for-hst-on-new-housing/ http://mahmudnaqvi.com/blog/changes-proposed-for-hst-on-new-housing/#comments Tue, 23 Jun 2009 18:21:09 +0000 Mahmud Naqvi http://mahmudnaqvi.com/blog/?p=65 Background The provincial government has announced that it intends to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST). • The HST is NOT YET IN EFFECT. The provincial government has indicated that it intends to bring the HST into effect beginning on July 1, 2010. • HST will not apply on the purchase price of re-sale homes. • HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions. Proposed Changes for New Housing Rebate HST will apply to the purchase price of newly constructed homes. Originally, the provincial government indicated that it would provide a rebate to ensure that, on average, new homes under $400,000 would not be subject to an additional tax burden. Homes priced between $400,000 and $500,000 would be eligible for a portion of the rebate, and homes priced above $500,000 would be subject to the full HST. However, the provincial government is proposing some significant enhancements to these rebates, as follows: • Enhanced new housing rebate – The province is proposing to enhance the new housing rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system. • New rental housing rebate – Similar to the enhanced new housing rebate, the province is proposing a rebate for new residential rental properties. This proposed rebate would support affordable rental housing across Ontario. Proposed Transitional Rules for New Housing The province is also proposing transitional rules for new housing. Generally, as part of the transitional rules, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010. The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010. More Detail Additional detail on the proposed enhancements to the new housing rebate, rental housing rebate, and new housing transition rules is available from the Provincial Government. ]]> http://mahmudnaqvi.com/blog/changes-proposed-for-hst-on-new-housing/feed/ 0