The Federal Budget 2022 made amendments to the way GST is applied in respect of newly constructed or substantially renovated single unit residential complexes or residential condo units.
Previously, when an individual assigns a real estate purchase and sale agreement, GST/HST may or may not applied depending on the circumstances. If the buyer demonstrated the intention to live in the home, then GST/HST would not apply.
The amendment, effective May 7, 2022, makes all assignment of sales of newly constructed or substantially renovated residential housing taxable for GST/HST purposes. GST/HST would have to be collected on any assignment profit.
If you have any questions regarding this new GST rule, please contact an LFG advisor today.
This article provides information of a general nature only. It does not provide tax or legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in this article. If you have specific legal questions, please consult with a lawyer.