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"No GST" Trap of New Construction Sales in Canada


If you are purchasing a brand new home or strata unit, or looking to “flip” or assign a pre-sale unit you are going to be subject to GST, and perhaps in the case of flipping or assignment, subject to collecting GST from the buyer and remitting it a second time.

In today's video, Surrey Real Estate Specialist, Steve Karrasch of Macdonald Realty discusses the case of when GST is applicable, most specifically when it is due on not just the first purchase of a new home but the second. Jimmy Le-Tang, CPA with Achieve CPA discusses the cases in which GST is applicable on a presale assignment, when it is applicable on new property that was never lived in and other scenarios.

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