90% Rule HST

CRA is offering HST seminar’s to help us understand the new charges and changes coming. I went to one last week hoping to learn something, meet new people and well you never know where your next listing or purchaser will come from! The course was highly informative I suggest you attend one. I am predicting a flurry of activity especially in the renovation business as we approach the HST start date July 2010. Real estate is affected. Anything that had GST is now subject to HST. That adds to the cost of selling a home and to the cost of buying a home.
Like anything there will be a transition. Today I am writing about the 90% rule. If 90% of the service has been performed before July start date then no HST is applicable. Say you list and sell a house in May conditionally. It firms up in June but doesn’t close until August 15th. As the listing agent 90% of your service or work has been completed before July 1st therefore no HST is applicable.
That makes sense to me but to be sure I suggest you document your work just in case 1 day 5 years later you are been audited. My opinion; a lot easier reviewing notes than trying to remember old sales.

Bricks & Mortar REAL ESTATE REPORTER

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The September edition of my newsletter, 'Bricks & Mortar REAL ESTATE REPORTER' is now available. Click here to read the newsletter today. You'll find valuable real estate information & tips. I've designed my newsletter to be your link to realty.

If you would like to subscribe to my newsletter, just send me an email tom@dampsy.ca with the subject line: Bricks and Mortar, and the next edition will be emailed to you.

Bricks & Mortar REAL ESTATE REPORTER

The June edition of my newsletter, 'Bricks & Mortar REAL ESTATE REPORTER' is now available. Visit http://dampsy.ca/June2008Newsletter.pdf to read the newsletter today. You'll find valuable real estate information & tips such as: "Spring Cleaning Safety Tips", "Keeping Your Lawn Green", "New Energy Initiatives for Homeowners", and much more. I've designed my newsletter to be your link to realty.

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