How Will The Land Transfer Tax Apply If I Leave My Home To My Kids?

Posted onOctober 25/2017By

Land transfer tax is something that is paid upon the purchase of property and is paid to the province at the closing date. This tax is based on the amount paid for the land as well as any mortgage or debt assumed upon purchase. If you are curious about what land transfer tax would be on your property, you can find a land transfer tax calculator online to give you an idea. It is a common wish that property should stay in the family; therefore, many homeowners choose to leave their homes to their children. However, when it comes to inherited property, there are still tax considerations. If a piece of land is given as a gift, then that makes the amount paid zero, which will result in land transfer tax not having to be paid. However, there are rules concerning residency, and if you gift your home to your…

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Can You Claim Land Transfer Tax?

Posted onJuly 26/2017By

Land transfer tax (LTT) is a charge levied by each Canadian province when you acquire a property. It is based on the amount paid for the land and includes any amount remaining on the mortgage or debt assumed as part of the purchase agreement. This tax is determined using a specific equation and a land transfer tax calculator. Many people wonder if land transfer tax can be claimed. If you’ve moved for work and your employer has not reimbursed you, you can claim the LTT. Also, there exists a rebate in the provinces of Ontario, British Columbia and Prince Edward Island that allows you to recoup the cost of the land transfer tax entirely. Land Transfer Tax Rebate In Ontario, first-time home buyers can qualify for a rebate that is equal to the full amount of the land transfer tax paid, up to a maximum of $4,000. As of January…

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How To Pay Land Transfer Tax

Posted onApril 10/2017By

When it comes to buying property, land transfer tax is another element to consider. Land transfer tax must be paid to the province once the sale is closed. Once you’ve bought land, or a beneficial interest in land, then you are responsible for the payment of the land transfer tax. Land transfer tax applies to all types of property/land, whether residential or commercial. Depending on which city you’re buying property in, land transfer tax may also have to be paid separately to the municipality. In Toronto, buyers also have to pay Toronto land transfer tax, in addition to paying tax to the province. It’s worth noting that land transfer tax must be paid on the closing date, which may not be the same as the occupancy date. In many condo buildings that are still under construction, you may have to pay a builder rent during your interim occupancy period. Your…

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Five Things You Need To Know About Ontario’s Land Transfer Tax

Posted onMarch 06/2017By

When people think of buying a home, they often forget about land transfer tax. People tend to be so preoccupied with finding the perfect property, coming up with a down payment and securing a mortgage that they overlook the other costs associated with home buying. Land transfer tax (LTT) is an important aspect of buying a property. Here are five things you need to know about LTT, from who pays it to how to find a land transfer tax calculator. What is land transfer tax? In Ontario (and every province in Canada with the exception of Alberta and Saskatchewan), you are required to pay a fee when land is purchased. Land is defined as any building that currently exists, or parcels of land where a building (or buildings) will be constructed. Who pays land transfer tax? Anyone who is purchasing land in Ontario has to pay LTT. Furthermore, if you…

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Land Transfer Tax 101

Posted onMay 18/2015By

When you purchase land in Ontario, you will have to pay Land Transfer Tax. This tax, like any other tax implemented by the government, sounds like a big deal. Unfortunately, it is. However, before you worry yourself about another taxation situation, here’s a cheat sheet to help you understand everything about it. Welcome to Land Transfer Tax 101! What is Land Transfer Tax? Land Transfer Tax is applicable in most Canadians provinces. In Ontario when you buy land, like any other purchase you would make, you will be taxed on it. LTT is an obligatory contribution to provincial revenue. What is considered land? Land is considered to be anything from buildings that already exist to buildings that are to be constructed. Some people confuse land with rural farm acreage but it is anywhere and anything that you can live or operate a business on. How is Land Transfer Tax calculated?…

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