As a general rule, real property transactions are taxable, even when the vendor is a small supplier and/or is not registered for GST/HST. In such cases, the vendor must collect and remit the tax (unless the purchaser is a GST/HST registrant—see discussion that follows). However, the sale of used residential property and certain sales of real property by an individual who is not engaged in a business are generally exempt from GST/ HST. In the case of bare land, if the property has been subdivided into more than two parts, even an unregistered individual must generally collect GST/HST when the property is sold.
If you are a Real Estate Agent in Canada, you should read this to save Tax and HST!
The following is post from Lior Zehtser, CPA, CA, co-founder and partner of ConnectCPA, Chartered Accountants – a virtual accounting firm that leverages technology to bring simplicity to the lives of business owners.
You won’t find many Chartered Accountants who felt the need to study another discipline after all was said and done with their articling and studies. Getting through the Canadian Chartered Accounting exams is a rigorous process and looking at another textbook and studying for another exam is probably the last thing an accountant would want to do. Thinking back to it, I don’t know why I went for it, but my passion for real estate led me down the Real Estate Agent path and I’m happy it did.
As co-founder of a Chartered Accounting firm, my priorities lie with my accounting clients – but when I hear about a unique property or when I have some spare time to browse MLS, it is sometimes hard to resist and I have to investigate further.
“...but in this world nothing can be said to be certain, except death and taxes.”
― Benjamin Franklin
“I like to pay taxes. With them, I buy civilization.”
― Oliver Wendell Holmes Jr.
“You can’t tax business. Business doesn’t pay taxes. It collects taxes.”
― Ronald Reagan
“Income tax returns are the most imaginative fiction being written today.”
― Herman Wouk
“Life, Liberty, and the Pursuit of Happiness... but only when you pay your taxes? That means your freedom is rented, leased, & not unalienable.”
― Steve Maraboli