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FAQs

What are the HST implications associated with buying or selling farm property?

Farms are mixed-use properties. The farm house and surrounding immediate acreage (sometimes considered to be two acres) can be considered to be a principal residence, which would be exempt from HST. The rest of the land would be used in a business, on which payment of HST may be required. A Seller need not collect HST on the sale if the Buyer is registered for HST and undertakes to self-assess, report, and remit any HST accordingly.

© 2015 Lawrence, Lawrence, Stevenson LLP

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43 Queen Street West, Brampton, ON, Canada L6Y 1L9
Telephone: 905.451.3040 Fax: 905.451.5058 Email: lls@lawrences.com

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