Does HST Apply When You Sell Your Home? Here’s What You Should Know
Selling a home or property comes with a lot of questions. But one important thing many people forget about is HST (Harmonized Sales Tax).Some think, “The buyer can just get an HST number, and it won’t matter.” But that’s not always true. The Canada Revenue Agency (CRA) has rules about when HST needs to be paid, and it could affect how much money you take home after a sale.
Could You Owe HST?
Here are a few questions to ask yourself:
- Do you run a business from home? (Like a salon or an office?)
- Do you rent out rooms or use Airbnb?
- Do you own a business on the property? (Like a landscaping company in a shop out back?)
- Is the property in your name or a company’s name?
- Did you plan to live in the home but end up renting it instead?
If you answered yes to any of these, HST might apply when you sell—and that could be a big surprise.
What Should You Do?
The rule is simple: If you claim HST, you’ll have to pay it at some point.Every sale is different, so it’s best to talk to an accountant or lawyer before making any decisions. At a recent seminar, experts from Wilkinson Accounting and Pretsell-Davies-Thompson Law shared helpful insights about real estate and HST. We learned a lot!If you have questions, feel free to ask. We’re happy to help—but when it comes to taxes, an expert is always your best bet.