How much LTT is payable on an assignment?
In the Land Transfer Tax Act, the definition of value of consideration:
- includes the gross sale price of any consideration,
- the amount expressed in money of any consideration,
- the value expressed in money of any liability assumed or undertaken by or on behalf of the transferee as part of the arrangement relating to the conveyance, and
- the value of any benefit conferred directly by the transferee on any person as part of the arrangement relating to the conveyance.
Let assume that John purchases a condo from a Developer for $400,000.00. He then sells it to Mary for $600,000.00 by way of an assignment.
Does Mary pay Land Transfer Tax on $400,000.00 or $600,000.00 when she closes the purchase with the Developer?
The definition above would indicate:
$400,000.00 plus
$200,000.00
$600,000.00
Brian Madigan LL.B., Broker