Land Transfer Tax Rebate Program extended to resale homes
OREA achieved one of its major government relations objectives in December when the provincial government announced that the existing land transfer tax rebate program would be expanded to include first time buyers who purchase resale, as well as new, homes. The change became effective immediately.
First time buyers of resale homes are now eligible for a refund from the provincial government of up to $2000 of the land transfer tax paid.
The expanded land transfer tax refund program for first time homebuyers is part of a package of new tax initiatives announced by Finance Minister Dwight Duncan in the 2007 Fall Economic Outlook and Fiscal Review.
Getting the refund
For resale homes a properly completed form Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes (Resale)must be submitted along with
·A copy of the registered instrument on which land transfer tax was paid (in the case of electronic registration, include a copy of the docket summary which relates to the transaction);
·A copy of the agreement of purchase and sale (only those agreements of purchase and sale entered into after December 13, 2007 may qualify) along with a copy of the statement of adjustments.
Refund applications on resale homes cannot currently be made electronically.
More information regarding eligibility requirements and other details can be found at: http://www.rev.gov.on.ca/english/notices/ltt/0207.html. You can also call the Ministry of Revenue at 905-433-6361 to learn more.