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Tax Options

Tax Options

For clients who utilize the Inventory Center in Lasso, there are several tax options that can be applied to purchased homes. To make a tax option available for selection in the Inventory Center, check the box beside the desired tax in the Project Admin Center. (See Set Project Preferences.)

The calculations for each tax option are as follows:

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5% (Formula) – Includes a rebate depending on the purchase price and applies if the purchaser paid 5% GST.

  • Price = Total Sales Revenue
  • Tax Rate = 5%
  • Tax = Price * 0.05
  • Rebate Percent = 36%
  • Maximum Rebate = $6,300
  • If Price is >= $450,000, Rebate = 0
  • If Price is <= $350,000, Rebate = Tax * 0.36
  • If Price is > $350,000 but < $450,000, Rebate = (($450,000 – Price) / $100,000) * (Tax * 0.36 to maximum of $6,300)

Examples:

a) Price = $300,000, Tax = $15,000, Rebate = $5,400, Tax – Rebate = $9,600

Tax:

  • $300,000 * 0.05 = $15,000

Rebate:

  • $15,000 * 0.36 = $5,400

b) Price = $400,000, Tax = $20,000, Rebate = $3,150, Tax – Rebate = $16,850

Tax:

  • $400,000 * 0.05 = $20,000

Rebate:

  • $20,000 * 0.36 = $7,200 (max is $6,300)
  • $450,000 – $400,000 = $50,000
  • $50,000 / $100,000 = 0.5
  • $6,300 * 0.5 = $3,150

c) Price = $500,000, Tax = $25,000, Rebate = $0

Tax:

  • $500,000 * 0.05 = $25,000

Rebate:

  • Price is >= $450,000, therefore Rebate is $0

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6% (Formula) – Includes a rebate depending on the purchase price and applies if the purchaser paid 6% GST.

  • Price = Total Sales Revenue
  • Tax Rate (GST) = 6%
  • Tax = Price * 0.06
  • Rebate Percent = 36%
  • Maximum Rebate = $7,560
  • If Price is >= $450,000, Rebate = 0
  • If Price is <= $350,000, Rebate = Tax * 0.36
  • If Price is > $350,000 but < $450,000, Rebate = (($450,000 – Price) / $100,000) * (Tax * 0.36 to maximum of $7,560)

Examples:

a) Price = $300,000, Tax = $18,000, Rebate = $6,480, Tax – Rebate = $11,520

Tax:

  • $300,000 * 0.06 = $18,000

Rebate:

  • $18,000 * 0.36 = $6,480

b) Price = $400,000, Tax = $24,000, Rebate = $3,780, Tax – Rebate = $20,220

Tax:

  • $400,000 * 0.06 = $24,000

Rebate:

  • $24,000 * 0.36 = $8,640 (max is $7,560)
  • $450,000 – $400,000 = $50,000
  • $50,000 / $100,000 = 0.5
  • $7,560 * 0.5 = $3,780

c) Price = $500,000, Tax = $30,000, Rebate = $0

Tax:

  • $500,000 * 0.06 = $30,000

Rebate:

  • Price is >= $450,000, therefore Rebate is $0

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7% (Formula) – Includes a rebate depending on the purchase price and applies if the purchaser paid 7% GST.

  • Price = Total Sales Revenue
  • Tax Rate = 7%
  • Tax = Price * 0.07
  • Rebate Percent = 36%
  • Maximum Rebate = $8,750
  • If Price is >= $450,000, Rebate = 0
  • If Price is <= $350,000, Rebate = Tax * 0.36 to maximum of $8,750
  • If Price is > $350,000 but < $450,000, Rebate = (($450,000 – Price) / $100,000) * (Tax * 0.36 to maximum of $8,750)

Examples:

a) Price = $300,000, Tax = $21,000, Rebate = $7,560, Tax – Rebate = $13,440

Tax:

  • $300,000 * 0.07 = $21,000

Rebate: 

  • $21,000 * 0.36=$7,560

b) Price = $400,000, Tax = $28,000, Rebate = $4,375, Tax – Rebate = $23,625

Tax:

  • $400,000 * 0.07 = $28,000

Rebate:

  • $28,000 * 0.36 = $10,080 (max is $8,750)
  • $450,000 – $400,000 = $50,000
  • $50,000 / $100,000 = 0.5
  • $8,750 * 0.5 = $4,375

c) Price = $500,000, Tax = $35,000, Rebate = $0

Tax:

  • $500,000 * 0.07 = $35,000

Rebate:

  • Price is >= $450,000, therefore Rebate is $0

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12% BC HST (2010) – Includes a rebate depending on the purchase price and applies if 12% HST became payable on the purchase before April 1, 2012.

  • Price = Total Sales Revenue
  • Tax Rate = 12% (Federal = 5%; Provincial = 7%)
  • Federal Tax = Price * 0.05
  • Provincial Tax = Price * 0.07
  • Federal Rebate Percent = 36%
  • Provincial Rebate Percent = 71.43%
  • Federal Maximum Rebate = $6,300
  • Provincial Maximum Rebate = $26,250
  • Provincial Rebate = Provincial Tax * 0.7143 to maximum of $26,250
  • See 5% (Formula) for Federal Rebate calculations.

Examples:

a) Price = $300,000, Tax = $36,000, Rebate = $20,400.30, Tax – Rebate = $15,599.70

Tax:

  • $300,000 * 0.05 = $15,000 (Federal)
  • $300,000 * 0.07 = $21,000 (Provincial)
  • $15,000 (Federal) + $21,000 (Provincial) = $36,000

Rebate:

  • $15,000 * 0.36 = $5,400 (Federal)
  • $21,000 * 0.7143 = $15,000.30 (Provincial)
  • $5,400 (Federal) + $15,000.30 (Provincial) = $20,400.30

b) Price = $400,000, Tax = $48,000, Rebate = $23,150.40, Tax – Rebate = $24,849.60

Tax:

  • $400,000 * 0.05 = $20,000 (Federal)
  • $400,000 * 0.07 = $28,000 (Provincial)
  • $20,000 (Federal) + $28,000 (Provincial) = $48,000

Rebate:

  • $20,000 * 0.36 = $7,200 (Federal max is $6,300)
  • $450,000 – $400,000 = $50,000
  • $50,000 / $100,000 = 0.5
  • $6,300 * 0.5 = $3,150 (Federal)
  • $28,000 * 0.7143 = $20,000.40 (Provincial)
  • $3,150 (Federal) + $20,000.40 (Provincial) = $23,150.40

c) Price = $600,000, Tax = $72,000, Rebate = $26,250, Tax – Rebate = $45,750

Tax:

  • $600,000 * 0.05 = $30,000 (Federal)
  • $600,000 * 0.07 = $42,000 (Provincial)
  • $30,000 (Federal) + $42,000 (Provincial) = $72,000

Rebate:

  • Price is >= $450,000, therefore Federal Rebate is $0
  • $42,000 * 0.7143 = $30,000.60 (max is $26,250), therefore Provincial Rebate is $26,250

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12% BC HST (2012) – Includes a rebate depending on the purchase price and applies if the HST became payable on the purchase after March 31, 2012, and before April 1, 2013.

  • Price = Total Sales Revenue
  • Tax Rate = 12% (Federal = 5%; Provincial = 7%)
  • Federal Tax = Price * 0.05
  • Provincial Tax = Price * 0.07
  • Federal Rebate Percent = 36%
  • Provincial Rebate Percent = 71.43%
  • Federal Maximum Rebate = $6,300
  • Provincial Maximum Rebate = $42,500
  • Provincial Rebate = Provincial Tax * 0.7143 to maximum of $42,500
  • See 5% (Formula) for Federal Rebate calculations.

Examples:

a) Price = $300,000, Tax = $36,000, Rebate = $20,400.30 , Tax – Rebate + $15,599.70

Tax:

  • $300,000 * 0.05 = $15,000 (Federal)
  • $300,000 * 0.07 = $21,000 (Provincial)
  • $15,000 (Federal) + $21,000 (Provincial) = $36,000

Rebate:

  • $15,000 * 0.36 = $5,400 (Federal)
  • $21,000 * 0.7143 = $15,000.30 (Provincial)
  • $5,400 (Federal) + $15,000.30 (Provincial) = $20,400.30

b) Price = $400,000, Tax = $48,000, Rebate = $23,150.40, Tax – Rebate = $24,849.60

Tax:

  • $400,000 * 0.05 = $20,000 (Federal)
  • $400,000 * 0.07 = $28,000 (Provincial)
  • $20,000 (Federal) + $28,000 (Provincial) = $48,000

Rebate:

  • $20,000 * 0.36 = $7,200 (Federal max is $6,300)
  • $450,000 – $400,000 = $50,000
  • $50,000 / $100,000 = 0.5
  • $6,300 * 0.5 = $3,150 (Federal)
  • $28,000 * 0.7143 = $20,000.40 (Provincial)
  • $3,150 (Federal) + $20,000.40 (Provincial) = $23,150.40

c) Price = $900,000, Tax = $108,000, Rebate = $42,500.00, Tax – Rebate = $65,500

Tax:

  • $900,000 * 0.05 = $45,000 (Federal)
  • $900,000 * 0.07 = $63,000 (Provincial)
  • $63,000 (Provincial) + $45,000 (Federal) = $108,000

Rebate:

  • $63,000 * 0.7143 = $45,000.90 (max is $42,500), therefore Provincial Rebate is $42,500
  • Price is >= $450,000, therefore Federal Rebate is $0

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12% BC HST Transitional Rules (2013) – Where construction began before April 1, 2013, but ownership and possession occurred after, purchasers pay transitional tax of 2% of full house price instead of the 7% Provincial of the HST. No Provincial tax rebate applies. Transitional rules are in place until March 31, 2015.

  • Price = Total Sales Revenue
  • Tax Rate = 7% (Federal = 5%; Provincial = 2%)
  • Federal Tax = Price * 0.05
  • Provincial Tax = Price * 0.02
  • Federal Rebate Percent = 36%
  • Provincial Rebate Percent = 0%
  • Federal Maximum Rebate = $6,300
  • See 5% (Formula) for Federal Rebate calculations.

Examples:

a) Price = $300,000, Tax = $21,000, Rebate = $5,400, Tax – Rebate = $15,600

Tax:

  • $300,000 * 0.05 = $15,000 (Federal)
  • $300,000 * 0.02 = $6,000 (Provincial)
  • $15,000 (Federal) + $6,000 (Provincial) = $21,000

Rebate:

  • $15,000 * 0.36 = $5,400 (Federal)
  • Provincial Rebate is $0

b) Price = $400,000, Tax = $28,000, Rebate = $3,150, Tax – Rebate = $24,850

Tax:

  • $400,000 * 0.05 = $20,000 (Federal)
  • $400,000 * 0.02 = $8,000 (Provincial)
  • $20,000 (Federal) + $8,000 (Provincial) = $28,000

Rebate:

  • $20,000 * 0.36 = $7,200 (Federal max is $6,300)
  • $450,000 – $400,000 = $50,000
  • $50,000 / $100,000 = 0.5
  • $6,300 * 0.5 = $3,150 (Federal)
  • Provincial Rebate is $0

c) Price = $500,000, Tax = $35,000, Rebate = $0

Tax:

  • $500,000 * 0.05 = $25,000 (Federal)
  • $500,000 * 0.02 = $10,000 (Provincial)
  • $25,000 (Federal) + $10,000 (Provincial) = $35,000

Rebate:

  • Price is >= $450,000, therefore Federal Rebate is $0
  • Provincial Rebate is $0

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13% ON HST (2010) – Includes a rebate depending on the purchase price and applies if the HST became payable on the purchase after June 30, 2010.

  • Price = Total Sales Revenue
  • Tax Rate = 13% (Provincial = 8%; Federal = 5%)
  • Provincial Tax = Price*.08
  • Federal Tax = Price*.05
  • Provincial Rebate Percent = 75%
  • Federal Rebate Percent = 36%
  • Provincial Tax Maximum Rebate = $24,000
  • Federal Maximum Rebate = $6,300
  • Provincial Rebate = Provincial Tax * 0.75 to maximum of $24,000
  • See 5% (Formula) for Federal Rebate calculations.

Examples:

a) Price = $300,000, Tax = $39,000, Rebate = $23,400, Tax – Rebate = $15,600

Tax:

  • $300,000 * 0.05 = $15,000 (Federal)
  • $300,000 * 0.08 = $24,000 (Provincial)
  • $15,000 (Federal) + $24,000 (Provincial) = $39,000

Rebate:

  • $15,000 * 0.36 = $5,400 (Federal)
  • $24,000 * 0.75 = $18,000 (Provincial)
  • $5,400 (Federal) + $18,000 (Provincial) = $23,400

b) Price = $425,000, Tax = $55,250, Rebate = $25,575, Tax – Rebate = $29,675

Tax:

  • $425,000 * 0.05 = $21,250 (Federal)
  • $425,000 * 0.08 = $34,000 (Provincial)
  • $21,250 (Federal) + $34,000 (Provincial) = $55,250

Rebate:

  • $21,250 * 0.36 = $7,650 (Federal max is $6,300)
  • $425,000 – $400,000 = $25,000
  • $25,000 / $100,000 = 0.25
  • $6,300 * 0.25 = $1,575 (Federal)
  • $34,000 * 0.75 = $25,500 (Provincial max is $24,000)
  • $1,575 (Federal) + $24,000 (Provincial) = $25,575

c) Price = $500,000, Tax = $65,000, Rebate = $24,000, Tax – Rebate = $41,000

Tax:

  • $500,000 * 0.05 = $25,000 (Federal)
  • $500,000 * 0.08 = $40,000 (Provincial)
  • $25,000 (Federal) + $40,000 (Provincial) = $65,000

Rebate:

  • Price is >= $450,000, therefore Federal Rebate is $0
  • $40,000 * 0.75=$30,000 (max is $24,000), therefore Provincial Rebate is $24,000

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14.5% QC HST (2012) – Includes a rebate depending on the purchase price and applies if the purchase agreement was entered into on or after January 1, 2012, but before January 1, 2013, and ownership and possession were transferred after December 31, 2011.

  • Price = Total Sales Revenue
  • Tax Rate = 14.975% (Provincial stated as 9.5% but = 9.975% factoring 9.5% into the rebate calculation; Federal = 5%)
  • Provincial Tax = Price * 0.09975
  • Federal Tax = Price * 0.05
  • Provincial Rebate Factor = Federal Rebate * 0.095
  • Provincial Rebate Percent = 49.1429%
  • Federal Rebate Percent = 36%
  • Provincial Maximum Rebate = $9,804
  • Federal Maximum Rebate = $6,300
  • If Price is >= $300,000, Provincial Rebate = Provincial Rebate Factor
  • If Price is <= $200,000, Provincial Rebate = (Provincial Tax * 0.491429) + Provincial Rebate Factor
  • If Price is > $200,000 but < $300,000, Provincial Rebate = (($300,000 – Price) / $100,000) *
  • (Provincial Tax * 0.491429 to maximum of $9,804) + Provincial Rebate Factor
  • See 5% (Formula) for Federal Rebate calculations.

Examples:

a) Price = $150,000, Tax = $22,462.50, Rebate = $10,309.51, Tax – Rebate = $12,152.99

Tax:

  • $150,000 * 0.05 = $7,500 (Federal)
  • $150,000 * 0.09975 = $14,962.50 (Provincial)
  • $7,500 (Federal) + $14,962.50 (Provincial) = $22,462.50

Rebate:

  • $7,500 * 0.36 = $2,700 (Federal)
  • $14,962.50 * 0.491429 = $7,353.01
  • $2,700 * 0.095 = $256.50 (Provincial Rebate Factor)
  • $7,353.01 + $256.50 = $7609.51 (Provincial)
  • $2,700 (Federal) + $7,609.51 (Provincial) = $10,309.51

b) Price = $250,000, Tax = $37,437.50, Rebate = $9,829.50, Tax – Rebate = $27,608

Tax:

  • $250,000 * 0.05 = $12,500 (Federal)
  • $250,000 * 0.09975 = $24,937.50 (Provincial)
  • $12,500 (Federal) + $24,937.50 (Provincial) = $37,437.50

Rebate:

  • $12,500 * 0.36 = $4,500 (Federal)
  • $24,937.50 * 0.491429 = $12,255.01 (Provincial max is $9,804)
  • $300,000 – $250,000 = $50,000
  • $50,000 / $100,000 = 0.5
  • $9,804 * 0.5 = $4,902
  • $4,500 * 0.095 = $427.50 (Provincial Rebate Factor)
  • $4,902 + $427.50 = $5,329.50 (Provincial)
  • $4,500 (Federal) + $5,329.50 (Provincial) = $9,829.50

c) Price = $350,000, Tax = $52,412.50, Rebate = $6,898.50, Tax – Rebate = $45,514

Tax:

  • $350,000 * 0.05 = $17,500 (Federal)
  • $350,000 * 0.09975 = $34,912.50 (Provincial)
  • $17,500 (Federal) + $34,912.50 (Provincial) = $52,412.50

Rebate:

  • $17,500 * 0.36 = $6,300 (Federal)
  • $6,300 * 0.095 = $598.50 (Provincial Rebate Factor)
  • $6,300 (Federal) + $598.50 (Provincial) = $6,898.50

d) Price = $450,000, Tax = $67,387.50, Rebate = $0

Tax:

  • $450,000 * 0.05 = $22,500 (Federal)
  • $450,000 * 0.09975 = $44,887.50 (Provincial)
  • $22,500 (Federal) + $44,887.50 (Provincial) = $67,387.50

Rebate:

  • Price is >= $450,000, therefore Federal Rebate is $0
  • Price is >= $450,000, therefore Provincial Rebate is $0

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14.975% QC HST (2013) – Includes a rebate depending on the purchase price and applies if the purchase agreement was entered into after December 31, 2012.

  • Price = Total Sales Revenue
  • Tax Rate = 14.975% (Federal = 5%; Provincial = 9.975%)
  • Tax = Price * 0.14975
  • Provincial Rebate Percent = 50%
  • Provincial Tax Maximum Rebate = $9,975
  • Provincial Tax = Price * 0.09975
  • Provincial Rebate = Provincial Tax * 0.50 to maximum of $9,975
  • Maximum Rebate = $9,975
  • If Price is >= $300,000, Rebate = 0
  • If Price is <= $200,000, Rebate = Tax * 0.50
  • If Price is > $200,000 but < $300,000, Rebate = (($300,000 – Price) / $100,000) * (Tax * 0.50 to maximum of $9,975)
  • See 5% (Formula) for Federal tax rebate calculations.

Examples:

a) Price = $150,000, Tax = $22,462.50, Rebate = $10,181.25, Tax – Rebate = $12,281.25

Tax:

  • $150,000 * 0.05 = $7,500 (Federal)
  • $150,000 * 0.09975 = $14,962.50 (Provincial)
  • $7,500 (Federal) + $14,962.50 (Provincial) = $22,462.50

Rebate:

  • $7,500 * 0.36 = $2,700 (Federal)
  • $14,962.50 * 0.5 = $7,481.25 (Provincial)
  • $2,700 (Federal) + $7,481.25 (Provincial) = $10,181.25

b) Price = $250,000, Tax = $37,437.50, Rebate = $9,487.50, Tax – Rebate = $27,950

Tax:

  • $250,000 * 0.05 = $12,500 (Federal)
  • $250,000 * 0.09975 = $24,937.50 (Provincial)
  • $12,500 (Federal) + $24,937.50 (Provincial) = $37,437.50

Rebate:

  • $12,500 * 0.36 = $4,500 (Federal)
  • $24,937.50 * 0.5 = $12,468.75 (Provincial max is $9,975)
  • $300,000 – $250,000 = $50,000
  • $50,000 / $100,000 = 0.5
  • $9,975 * 0.5 = $4,987.50 (Provincial)
  • $4,500 (Federal) + $4,987.50 (Provincial) = $9,487.50

c) Price = $350,000, Tax = $52,412.50, Rebate = $6,300, Tax – Rebate = $46,112.50

Tax:

  • $350,000 * 0.05 = $17,500 (Federal)
  • $350,000 * 0.09975 = $34,912.50 (Provincial)
  • $17,500 (Federal) + $34,912.50 (Provincial) = $52,412.50

Rebate:

  • $17,500 * 0.36 = $6,300 (Federal)
  • Price is >= $350,000, therefore Provincial Rebate is $0

d) Price = $450,000, Tax = $67,387.50, Rebate = $0

Tax:

  • $450,000 * 0.05 = $22,500 (Federal)
  • $450,000 * 0.09975 = $44,887.50 (Provincial)
  • $22,500 (Federal) + $44,887.50 (Provincial) = $67,387.50

Rebate:

  • Price is >= $450,000, therefore Federal Rebate is $0
  • Price is >= $450,000, therefore Provincial Rebate is $0

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Custom – Enter the tax percentage as a whole number, e.g. enter 5% tax as 5. Tax will be calculated by multiplying the Total Sales Revenue by the entered amount divided by 100. No rebate is applied.

  • Price = Total Sales Revenue
  • Tax = Total Sales Revenue * tax amount entered / 100

Example:

  • Total Sales Revenue = $450,000
  • Custom amount entered = 5
  • Tax = $22,500 ($450,000 * 0.05)