| | | Carmel Kidd, b.a., Broker Listing & Selling Homes for over 20 Years!
Outstanding Negotiating & Marketing Skills! Discover the value of your home. It's free, it's quick, it can be by email! In order to give you an accurate evaluation, I must do a personal inspection of your property. Your Comparative Market Analysis is essential to evaluating your home for sale, to get it's value for a loan or refinancing, or for estate planning, or, of course, if you plan to sell. There is NO OBLIGATION. However, if you find my presentation both professional and informative, I hope we can do business together. | | |
My FREE Reports, Helpful Tips, Calculators and Home Improvement Guide are invaluable. Call or email me for the latest information on Land Transfer Taxes, or for important information on Seller Representation and Buyer Representation. For example, as a buyer, you may assume that your information remains confidential when working with an agent but that is not necessarily the case. Please call or email me for details. If you're planning on selling your home, I can clarify the various types of representation. For example, if your listing agent brings you an offer from a buyer, who is she or he working for? Just email me at ckidd@trebnet.com. I can recommend many businesses associated with real estate to help you prepare your home for sale such as stagers, a service that will do small jobs or renovate your home prior to selling. Other services include window cleaners, plumbers, electricians, house cleaners, landscapers, gardeners, roofers, carpet cleaners, air conditioning and furnace specialists, window installation, hardwood specialists and garbage removal, to name a few. Also, if you have unwanted furniture, I can recommend a womens' shelter that would appreciate any donations you might have, and they will pick it up! Working in your best interests HST EXPLAINED AS OF JULY 1, 2010 Link to Releases: Summary: The transitional rules explain how HST will apply to transactions that straddle the start-up date. For purposes of the following discussion, it is assumed that a REALTORS® commission becomes due or is paid when the property is sold or leased.
The HST would generally apply to a REALTORS® services to the extent, expressed as a percentage, that the services are performed on or after July 1, 2010. However, if 90% or more of the services are performed before July 1, 2010, the HST will not apply.
For example, a REALTORS® services are performed from June 1, 2010 to July 2, 2010 with the sale of the property closing on July 2, 2010. The REALTORS® commission becomes due at the time of closing. More than 90% of the REALTORS® services were performed before July 1, 2010. In these circumstances, the GST at the rate of 5% will apply to the REALTORS® services.
In another example, a REALTORS® services are performed from May 1, 2010 to July 31, 2010 with the sale of the property closing on July 31, 2010. The REALTORS® commission becomes due at that time. In this case, 2/3 of the services were performed from May 1, 2010 to June 30, 2010 and 1/3 of the services were performed from July 1, 2010 to July 31, 2010. The REALTOR® will charge GST on 2/3 of the amount charged for the services and HST on the remaining 1/3.
It is a question of fact when the REALTORS® service commences and ends for purposes of applying either GST or HST under the transitional rules. The Canada Revenue Agency will consider various factors when making a determination as to when the services are performed and how the GST or HST will apply to the commission. These factors include:
- when agreements are entered into (such as the listing agreement or buyer agency agreement and
the agreement of purchase and sale) and when the transaction closes;
- the records retained by the REALTOR®, such as mileage logs; and
- the time period during which the REALTOR® is engaged by the client.
Further, the Canada Revenue Agency has indicated that it will take a fair and reasonable approach in the circumstances.
In general, the service commences when the agent and client sign a listing agreement or buyer agency agreement. The service may conclude when the deal has “closed” – (leased or sold). It may or may not conclude when an agreement of purchase of sale/lease has been signed because the REALTOR® could still provide some services up to the time the REALTOR® is paid when the deal closes.
Canada Revenue Agency and Finance officials have indicated verbally that a reasonable basis to apply the 90/10 percent rule and to determine how much HST will be payable on the services may be to prorate the number of calendar days:
- before July 1, 2010 (GST applies); and
- after June 30 (HST applies)
over the time period beginning with the listing of the property and ending on the completion of the sale/lease. http://www.cmhc.ca/en/corp/nero/nere/2010/2010-06-08-0815.cfm |
Carmel Kidd, b.a., Broker 416-762-4200 | | |