Buyers should consider purchasing a greenbelt.
For example, a home on a green belt would be a great investment.
But many condos and townhouses are also eligible for a green-belt tax exemption.
Here’s how to calculate it.
The list below is provided for informational purposes only and should not be construed as an offer to buy or sell real estate in Ontario.
If you have any questions or comments about the list, please email us at [email protected]
List price: $2,000,000 greenbridgett property description: A greenbelt property on the southwest corner of Bloor and Bloorview boulevards, located at the southeast corner of the Bloor-Danforth Greenbelt.
Available to investors: Yes (with a minimum purchase price of $2 million) property type: Passive, duplex, detached, semi-detached, condominiums, townhouses, townhomes, single-family homes, apartment complexes, townhouse condominium, detached-condominiums (with multiple units), condo-unit complexes, dupes, apartment units, townhome units, single detached homes, condos, town homes, detached single-story houses, duped townhoms, dup duped single-storey houses, town houses, semi duped houses, single storey townhommes, dupplexes, detached dupes (with multi-unit units), detached semi dupes with multiple units, dupced dupes duped dupes.
Property tax exemptions: None.
Interest rate: 3.25% per year.
Minimum purchase price: Only $2.5 million (minimum purchase price excludes taxes).
Interest rate for the property tax year ending in June 2019: 5.25%.
The property tax exemption will be applied in the following manner: The amount of the tax exemption is the sum of the total of all of the following amounts (excluding taxes): The maximum tax rate that would be applicable for the year of the exemption, including any extension or reduction in the maximum tax rates applicable to the year for which the exemption is being applied.
The total of the amounts (including taxes) is the amount that would have been eligible for the maximum exemption under the applicable maximum exemption.
The maximum exemption rate (as determined under paragraph (a) of the definition of maximum exemption in section 4 of the Income Tax Act ) would apply to all eligible taxable income of the owner for the taxable year that the owner is claiming the exemption under section 4.2 of the Act.
The amount that is not eligible for an exemption under paragraph 4.3 of the Definitions and Regulations in the Income and Business Tax Act would be subject to an additional tax at the rate applicable to each of the taxable years in which it is eligible for exemption under that paragraph.
The tax-free interest rate on the loan proceeds of the property is equal to the interest rate that was applicable to its purchase price on the day the loan was made, after deducting any tax paid on the sale of the loan.
If the property has been vacant for more than 12 months, the owner may be entitled to a tax-exempt mortgage loan under subsection 26(2) of The Landlord and Tenant Act .
Interest rates are subject to adjustment for inflation.
Property may be sold at the market rate and may be subject