Realtors and HST on collision course

What's Taxable? "A brand new residential home from the builder, never having been occupied, will be subject to HST. A substantially renovated used residential dwelling would also be chared this tax. As well, a used residential dwelling that had not been substantially renovated would have the potential for being subject to the tax if, for example, some renovations were done for purposes of using a portion of the dwelling for an office. If the person then claimed an input tax credit for the HST charged on the renovations, (at point of sale or conversion) that portion of the dwelling used for an office would then be subject to the HST. In this case, if the portion renovated comprised 10% of the dwelling and the property sold for $400,000.00, then $40,000.00 would be subject to HST." OREA

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