Land Transfer Tax and First-Time Home Buyers
Who Pays Land Transfer Tax?
When you acquire land or beneficial interest land, you will pay land transfer tax to the province when it closes. Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt that is assumed as part of the purchase.
Definition of Spouse for Land Transfer Tax Purposes
For land transfer tax purposes, spouse means either of two persons who are legally married to each other, or who are not married legally to each other and have cohabited: continuously for a period of not less than three years, or. in a relationship of some permanence, if they are the natural or adoptive parents of a child. This is also known as a common-law relationship.
Land Transfer Tax Refund for First-Time Home Buyers
First-time home buyers may qualify for a land transfer tax refund. In order to claim a refund, you must be at least 18 years of age, you cannot have owned a home or an interest in a home anywhere in the world, and your spouse cannot have owned a home or interest in a home anywhere in the world while he or she was your spouse. Keep in mind the above mentioned definition of “spouse”.
How Much Is the Refund for First-Time Home Buyers?
The maximum refund for first-time Home Buyers is $4000.00. Beginning January 1, 2017, there would be no Land Transfer Tax payable by qualifying first-time home buyers on the first $368,000.00. First-time home purchasers of homes greater than $368,000.00 would receive a maximum refund of $4000.00.
If you are a first-time home buyer contact our Elizabeth Street office in Midland, Ontario by phone at 705-526-3791 for a quote or speak directly to one of our lawyers.
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