Facebook
X
Pinterest
Copy Link
Do you have to pay tax on vacant land sales in Ontario?
To answer this question it has to be broken down into two categories, Capital gains tax and HST. In general you do have to pay a capital gains tax, however HST is not often applicable. Watch the video below as local accountant Adam Vander Duim explains the answer to this question.
According to the Gov of Canada there are 3 scenarios where your vacant land sale would be subject to HST:
- capital property that you have used primarily for a business
- the sale of land through the course of a business
- selling land after the original parcel has been subdivided 2 or more times.
For more information on tax of vacant land sales check out the Government of Canada’s website.
Need to connect with an accountant? you can contact Adam here.
Want to talk Real Estate? Connect with me here, I’d love to chat.
