Ontario Real Estate Licensing Exam Practice · Question
When is HST generally applicable to the sale of an existing resale residential property in Ontario?
The sale of most used residential properties by individuals is HST-exempt. However, if an individual or builder substantially renovates a property and sells it,
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Question: When is HST generally applicable to the sale of an existing resale residential property in Ontario?
Answer options:
- Only when the seller is a corporation.
- Never, as it is always exempt. ✅ When the property has been substantially renovated by the seller for resale.
- Only if the property is valued over $1,000,000.
Correct answer: When the property has been substantially renovated by the seller for resale.
Explanation: The sale of most used residential properties by individuals is HST-exempt. However, if an individual or builder substantially renovates a property and sells it, it may be considered a 'new' residential property for HST purposes, making the sale subject to HST.
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