HST FOR DUMMIES: New Home D(R)ebate

This is serious stuff!

Jas Jagpal, BSc. Broker, CNE, ASA, A Real Fine Guy, Awesome REALTOR®, Real Estate Broker in the G.T.A.
more specifically, Markham, Ontario, Canada L3S 3K9

http://www.TorontoMarkhamRealEstate.com

Cheers
©Jas Jagpal

So you thought why not?

Everyone is doing it... let's join the party!

I did too!

You bought it for $400K... put down $80K and thought you'd double your money.

So you...

Borrow from your line of credit...

and...

But no one told you that the contract you signed had rules for taxes and rebates!

For the rebate you had to consider first...

Geez... You can laugh you know :)

They are our distant relatives. Only if CRA would consider this.

Well... let's get back to reality and the rules...

Now your wishing... if only we knew them and their full consequences before buying right?

And it would be nice to know how the market would be in 2013, 2014, 2016, 2017!

Well no one can but the rules are simple...

#1 Rule - Pay Your Taxes that's what life was meant for.

#2 Rule - Don't forget to Pay Your Taxes

#3 Rule - Pay Your Taxes, they only add up and don't go away

#4 Rule - Stop shitting... Find a way to Pay Your Taxes!

#5 Rule - If you didn't get it, Start again at #1.

Copyright, the government of New Home Rebates

I just want you to know...

HST is not a prime ministerial DEBATE!

Debate

Don't they look awesome?

Brian Harper and Justin Trudeau? Joking!

There's that but again...

Yes... doesn't matter if it is a house or condo.

REBATE

YES REBATE... not DEBATE.

Now if you are a smart you will go to google and search the documents and READ them.

Then you can kick ass on HST conversation with your Lawyer, Realtor, Family, Friends, Cat, Dog and anyone else who will listen!

Now the pressure is on and It's time...

To close your new home!

And life sucks. I've gone through it.

What are you going to do?

Builders didn't properly disclose because
they don't want us to second guess buying.

Yes... even today, most Realtors don't know!

Think about it. How can you?

Unless you have gone through the grueling process yourself or with a client.

Don't stare too long!

Over the past year... CRA is cracking the whip!

I highly recommend that you get to know & follow the rules

or

highly likely you're going to get a "hurt real bad" as the comic Russel Peters would say.

Lawyers are sounding the warning bells and doing their job as they see clients who are falsely declaring the investments as primary residences and getting penalized.

Are the rules fair? Now that's a debate... but it wont help you with getting a rebate.

Yes you are thinking this... be honest.

I personally never swear... but we all know how it is!

Like in the intro I'm the nicest guy ever! :)

What happens is that we all start to SCRAMBLE at the end when we find out.

We get bummed out and stressed.

You are thinking of all the different schemes on how to get through this dilemma you face.

You are looking for solutions, calculating the costs, and for many, everything just sucks!

Am I right?

Scheme 1 - Assign it?

Unless you are one of the lucky few whose unit actually increased in price significantly and are willing to sell at or near purchase price + commissions.

Don't forget.... Any profit you make, you still have to claim and pay your share of the TAXES.

Count yourself LUCKY if you are in this boat... if not... keep reading!

Scheme 2- Get a blood relative to move in... or pretend to do that. That will save having to pay HST on closing.

But CRA is making sure they physically move in!

The onus of proof is on you. Booking moving truck, etc.

Plus if it's a scheme... think of how would you lease your unit without putting it on the MLS or Kijiji where they cd=an see all this and recover your costs on holding the unit?

Same reasoning as with parents.

The Truth Is

You Can Dodge

The Bullet

But You Can't

Dodge The Pain!

You gotta face the truth.

You need to do what you can and move forward.

So what is really the only solution?

Their is Just 1 that works for Condo Investors typically...

It is called:

HST NEW RESIDENTIAL RENTAL PROPERTY REBATE
Complete document is here:
http://www.cra-arc.gc.ca/E/pub/gp/rc4028/rc4028-07-13e.pdf

Since you bought it as an INVESTMENT!!!

To pay the REBATE the builder would have received.

For Your Greedy Mistake...

Yes it was greed motivating us all! We need to own our mistake, learn our lesson and move on.

Now if on closing

You are still confused

Then Check out

HST For Dummies 2

at:

http://www.torontomarkhamrealestate.com/hst-dummies-2-new-home-drebate

HST For Dummies 2

Short link: http://goo.gl/T2HdTQ

Disclaimer:
Jas Jagpal, BSc. Broker, Certified Negotiation Expert, REALTOR®, Accredited Senior Agent,

A good looking awesome family-guy who helps buyers, sellers and investors in the GTA with his remarkable partner Jess.

Further to, who is an Independent Contractor at RE/MAX Dynasty Realty Inc. Brokerage, in Markham at 8 Shadlock St. Ontario, L3S 3K9

Further to, who can be reached by email, fax, cell, Facebook, Youtube, LinkedIn, Pinterest, Twitter, just google his name.

Must disclaim that this presentation should be taken for entertainment value and not as EXPERT legal, tax, accounting, investment advice.

Cheers and have an awesome day!