Canadian residents that have built or hired someone to build a new house as their principal residence within the last two years may qualify for the GST/HST New Housing Rebate. The Rebate may be as much as $30,000. The Rebate will be lower outside of the provinces of Ontario and Quebec.
To qualify for the GST/HST New Housing Rebate, owners will be required to retain their receipts for all goods and services where HST was paid in the building of the home.
Our experts understand homebuilding and have the expertise to navigate the CRA’s state-of-the-art systems allowing us to properly navigate the GST/HST New Housing Rebate approval process and help you obtain the maximum rebate.
When purchasing a new home or condo to live in, or for a family member to live in, the GST/HST rebate is frequently assigned to the vendor upon closing who consequently lowers the purchase price by the rebate amount.
New Residential Rental
Canadian residents who purchase a property for investment purposes may qualify for the GST/HST New Residential Rental Property Rebate to receive a rebate up to $30,000 directly from the federal and provincial government.
The GST/HST New Residential Rental Property Rebate is generally available to a owner of a residential property that is leased for a period of at least one year to a tenant.
At the time of closing the purchaser will typically be required to pay the builder an additional amount equal to the rebate. Once the property is rented the purchaser has two years from the date of closing to claim the GST/HST New Residential Rental Property Rebate.
Multi Unit rentals and Coops also qualify for the GST/HST New Residential Rental Property Rebate, but the application process is significantly more complex and onerous. Please contact us to discuss these situations.
Substantially Renovated Home
Canadian residents that have substantially renovated, added major addition or converted a non-residential house within the last two years may qualify for the GST/HST New Housing Rebate. The Rebate may be as much as $30,000. The Rebate will be lower outside of the provinces of Ontario and Quebec.
In the eyes of the CRA a house that has been substantially renovated, is generally treated as a new house. By definition 90% or more of the house’s interior need to have removed or replaced to qualify. Our firm defines a substantial renovation as a house that has been taken “back to the studs.”
A major addition also qualifies for GST/HST New Housing Rebate. The addition should at least double the size of the liveable areas of your existing house, which is absorbed into the new one.
Much like Owner-Built Homes owners will be required to retain their receipts for all goods and services where HST was paid in the renovation of the home.
Notice of Objection
If you have received a Notice of Assessment from the CRA denying your GST/HST Rebate Application we may be able to help you.
The rebate application process is complicated and peoples circumstances vary. Filing a rebate application without full and total knowledge of the client’s situation can lead to a claim being denied.
Our experts will work with you to file a Notice of Objection on your behalf and represent you in all discussions with the CRA.