Did you know that if you buy a newly constructed home from a builder and use it as your (or a family member’s) primary residence, you will receive a GST/HST rebate in Ontario? Unlike when you purchase a new residential rental property or undergo substantial renovations and have to apply for the rebate yourself through the Canada Revenue Agency (CRA), the builder will apply for the HST rebate for your pre-construction condo or home on your behalf.
Because rebates can be a bit confusing, especially when it comes to determining eligibility, we’re going to go over how the rebate works when purchasing a new home, whether it’s pre-construction or a new residential rental property.
How The GST/HST Rebate Works When Purchasing A Pre-Construction Condo Or Home
How To Receive The HST Rebate In Ontario As An Investor
If you’re a real estate investor in Ontario, you’re still in luck. If you are going to buy a new property for the purpose of renting it out, you may be eligible to receive the New Residential Rental Property Rebate after applying to the CRA.
You are eligible to apply for the new residential rental property rebate if you:
You must apply within two years from the closing date to apply for the rebate, otherwise, you are no longer eligible. The maximum rebate amount you can be eligible to receive is $30,000.
If you need assistance gathering the correct information, filling out the forms, and dealing with the CRA, you should seek help from a professional. This is where Sproule + Associates can come in. While they cannot assist those who have purchased a new home or condo from a builder, they can assist investors, those who have undergone substantial renovations, or who have built their own house. Investors who purchased a multi-residential property are also eligible for the HST rebate, however, the process is a lot more complex; another reason why you should ask a professional for help.