HST Drop Helps with Transitional Period

vancouver condosUnder the new regulations, the provincial portion of the HST paid on all new homes will be going down to just two percent.  This will be the case at least for all new homes under $850,000.

The building industry is more than pleased to hear this news as there has been a real slow down in this area.  According to the government the move is a means of keeping the transition towards the old PST from the HST smooth.

The province is set to return to the PST on April 1 2013.  This was apparently the earliest that the government felt it could handle the move away from the HST.

The regulations announced by the government are apparently designed to ensure the prices don’t change dramatically all of a sudden.

The move means that all new homes under the $850,000 threshold will pay only two percent as opposed to the usual seven percent of the provincial portion.  At present only homes for 525,000 or less are eligible for the HST rebate program.

Another rebate is being introduced for secondary and vacation homes.  These Home Buying Rebates are only available for homes for sale outside the Capital and Greater Vancouver districts.

Vacation homes for sale Vancouver and condos for sale Vancouver will not therefore qualify for the rebate.  While this disappoints Vancouver realtors and realtor Vancouver groups, the government will not budge on the issue.

For homes for sale Vancouver priced over the $850,000 mark, only two percent will be paid up until the $850,000 and the full seven percent will be paid on the remaining cost.  As of April 1 2013 however, the 2 percent tax will be applied to all houses regardless of the cost. Visit at https://taxfyle.com/blog/claiming-dependents-on-taxes/ to know more detail idea about claiming dependents on taxes.

The homebuilding industry is very happy with the move as they have been hard hit by the HST’s increased costs for buyers.  Others however still wonder why the HST will not be removed entirely until 2013.

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