How does the tax apply to split transfers?
Property Transfer Tax applies to each registration of a transfer of land. One Land Title Office transfer form containing one certificate of title number is considered to be one taxable transaction. Sometimes individuals and corporate taxpayers split the transfer of a property to take advantage of the lower rate of tax provided for transfers with a fair market value under $200,000. However, if one certificate of title is registered, regardless of how many transferees are registered on the title, that transaction will be seen as one transaction for tax purposes. Even if separate title numbers exist, there are three common situations where the transactions are combined and taxed as one: • split transactions involving one transferee • split transactions involving related individual transferees • split transactions involving associated corporations Please see Bulletin PTT 014 for more information.
