Some real estate agents in Vancouver are engaging in a practice which is depriving the Canada Revenue Agency of GST payments and other realtors aren’t happy about it. The Globe and Mail investigated multiple listings of homes which are marketed as personal residences but which appear to have never been lived in.
While most realtors would avoid the practice, some are leaving buyers open to a large tax bill from the CRA. It could be a misunderstanding of the rules; one agent mentioned by The Globe seemed unaware that tax would be due on a home that hasn’t been lived in, whatever time has passed since it was built. The BC Real Estate Council advises that realtors consult a tax expert before advertising homes that may be subject to GST.
While most realtors would avoid the practice, some are leaving buyers open to a large tax bill from the CRA. It could be a misunderstanding of the rules; one agent mentioned by The Globe seemed unaware that tax would be due on a home that hasn’t been lived in, whatever time has passed since it was built. The BC Real Estate Council advises that realtors consult a tax expert before advertising homes that may be subject to GST.
