HST on land
I have a question regarding HST. I recently severed a piece a land off my property. I am now selling the new vacant land as a residential building lot. And the question is: Is HST payable on the transaction?
Your question is a good one and not as straightforward as you may think. HST is generally applicable when you are building and purchasing new homes and condos. It can sometimes lead to extremely complicated calculations because the federal government offers a GST/HST rebate to qualified purchasers of new homes.
In your case, if you have never personally severed your parcel of land and you are making it into a single residential lot then the sale of that lot is exempt from HST. This is also the case if you sell it to a family member.
The overriding determining factor is if the property is not capital property used primarily in a business and is being sold in the course of that business.
I would consult your lawyer to make sure your land falls under these exemptions.