HST Issue on Sale of Farm Land

By Kristopher McEvoy, CPA, CGA, CFP

Posted in Farms

HST Issue on Sale of Farm Land

When putting your farm up for sale, it is essential to make sure that the terms of real estate sale agreement are “excluding HST”!

Beware of Offers 'Inclusive of HST'

Depending on the registration of the party you are selling your farm to, you don’t want to accept an offer inclusive of HST.

You Could Get Stuck Paying HST

Accepting an offer inclusive of HST could mean that you are responsible for remitting 13% of the proceeds of your farm land sale to the government.

Buyer May Not Be HST Registered

If the other party, for whatever reason, were not to be an HST registrant this could leave you on the hook for a tax bill.

Exclusive of HST

Accepting an offer on your property “exclusive of HST” ensures that whatever the tax outcome, you have agreed to a price for the property itself, and the taxes will be dealt with separately.

Contact us for more information on how to get the most out of the sale of your farm.


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