The federal government announced back in May that all assignments will be subject to a 13% HST tax in Ontario.

This tax has also been applied, but we used to have specific workarounds – but as of May 7th, those workarounds no longer apply.

What does this mean for you?

You pay HST on the deposits plus an additional 13% on the increase in home value once the assignment is complete.

For example, if you purchased your home for $600,000 but then sell it for $800,000, you’ll need to pay an additional 13% on the $200,000 profit you made.

So, how can I help you save?

There are some key deductions you can make along the way to reduce the amount of HST you owe.

Since May, our clients have saved between 15% & 20% following these guidelines.

You can SAVE MONEY by claiming HST on your closing expenses, such as:

  • realtor’s commission
  • lawyer fees
  • other assignment-related expenses, such as staging or upgrades you’ve done on the property.

You see, the CRA will be after your money pretty quickly if you’re not careful. They’ll charge HST on what we pay for goods sold, which means it’s important to deduct that from everything else throughout the process, so there isn’t too much left over when all is said and done!

In this case, we will deduct the HST tax from what you pay them upfront to cover the cost of goods sold, which will partly offset the deductions throughout it all.