If you or a client are involved in the sale of new housing in Saskatchewan, then you are no doubt aware of the GST, and recently announced PST rebates.

While both of these programs help greatly with affordability and are much welcomed by the industry, they come with inherent complexity that it seems only governments are able to create.

As anyone that has worked with real estate knows, housing is priced in a special way unlike almost every other industry. The AFTER tax number is always what's used.

The problem is, the method given by both governments for calculating the rebates require that you start with the pre-tax amount. This is an amount that virtually no one knows once a deal is done.

Market pricing, negotiations, additions by the buyer, number of realtors involved, etc. all change the after tax number you're working with, which changes the rebate percentages, which changes the pre-tax amount.

Normally reversing a tax amount out of an after tax number is easy, and requires only a single calculation.

But due to the nature, of the GST rebate for example, being infinitely variable between $350,000 and $450,000, it's impossible to know what tax rate to reverse out without following a multi-step mathematical formula, or trial and error until you finally guess the proper number.

When only the GST rebate was a factor, this process, while inconvenient, wasn't impossible.

However, with the introduction of the PST rebate, things have gotten almost impossibly complex. And a simple math formula or guessing are no longer options.

We now have to consider that while the area the rebate is variable is between $350,000 and $450,000 for both GST and PST, PST excludes certain items, such as land, that GST includes.

This creates a situation where we now have two infinitely variable rebates that are offset from each other, and shift position in relation to each other depending on the value of the items PST excludes.

So what are people to do? A small mistake in calculating taxes can result in thousands of dollars in over payments to the government, or thousands in under payments, resulting in fines, penalties, and audits!

And this is on every single house!

We saw this problem and so created a solution that can help everyone save time and money. A quick and easy to use calculator that tells you exactly what the rebates are, what the pre-tax numbers are, and everything else you need to know.

Watch the video below to see how it works.

As you can see, just by entering 5 simple numbers, you can see in seconds all of the needed information to properly fill out your rebate forms.

If you aren't using the proper numbers, you could be missing out on thousands of dollars on every home, or risking costly fines and audits!

For example, on an after tax house price of $450,000, with a land value of $140,000, if you try calculating out the taxes separately, either by guessing or still using a math formula that you would have to create, you will calculate a rebate of roughly $8,300. While the actual rebate due to you is over $8,900!

You are losing $600 on one home!

Another error that people have made is using their contract price for the basis of the government supplied forms. But remember, the government forms are only meant for pre-tax numbers.

If you made this error on a $570,000 home with $150,000 land value, you would be claiming a total rebate of $1,764. While your actual rebate should be over $6,400!

On this one home you're losing over $4,600 in taxes that are rightfully yours!

There's also situations where miscalculating the rebate can result in a larger rebate than you're entitled to.

And as the CRA has made clear, ignorance of the rules isn't an excuse they'll listen to, and they will fine and audit you resulting in a great loss of time and money.

Protect yourself, your company, your clients, your time, and your money by using the only tax rebate calculator designed exclusively for people selling new housing in Saskatchewan.

Your satisfaction is guaranteed.