HST rebates can go a long way in helping homeowners reclaim some of the costs of purchasing, building property or undergoing substantial renovations. But there is a lot of misinformation out there about the government’s HST rebate program.
Rebate4U busts five of the most common myths to help you receive a nice cheque in the mail of up to $24,000 from the CRA.
You can only qualify for an HST rebate if the property is your principal residence
Both personal and investor homeowners can qualify for the HST rebate, but you need to fulfill a few different requirements if it’s an investment property. When the property is built, your builder will ask you whether you plan to move into the property. If you say that you plan to move in, then the builder will claim the HST on your behalf and that will be taken off your sale price. If it’s an investment property, the builder will not claim it for you, but you may qualify for another HST rebate if you have at least a one-year tenant lease for the location. You may also qualify for a rebate if you have substantially renovated a rental property or built a new property.
HST rebates are related to your income tax
Your HST rebate can be filed any time during the year and it has nothing to do with filing your taxes. If you have done extensive home renovations that relates to other government tax credit programs, Rebate4U can help you out if you’re also filing an HST rebate application with us. Also, the rebate you receive does not be declared as income at year-end.
In Ontario and B.C. your home’s market value affects your HST rebate eligibility
Provincial programs exist in Ontario and B.C., which don’t take your home’s value into account. The rebate amount differs across the provinces and portions of the rebate are covered by the provincial government and the federal government. In Ontario, the maximum provincial rebate amount you can receive is $24,000, while in British Columbia you can receive a maximum amount of $42,500.
HST rebates are for first-time homebuyers and energy-efficiency retrofits
The government offers tax credits for first-time homebuyers and retrofitting your home to be more energy efficient, but HST rebates are not related to that. Homeowners can claim multiple HST rebates, as long as the properties they claim are newly built houses or condos or they’ve undertaken extensive renovations that changed 90 per cent of their home’s interior.
If you just found out about the HST rebate some time after your home renovation or purchase of a new home, you’re out of luck
You don’t have to file your HST rebate right when your home renovation/newly built home is complete, but it’s important not to wait long. You can only claim a rebate within two years of substantial completion of the renovation completion or from your new property’s closing date. However, we recommend getting it done right away because the government may change the program at any time. If you’ve missed the date, then it’s free money from the government that you’re missing out on. Don’t delay filing your HST rebate!
Rebate4U can ensure that you’re filing your tax rebate properly to maximize your return and avoid any clawback from the CRA. Our priority is to provide our clients with the most professional and quality service in obtaining rebates for their new and renovated homes. We are proud to offer our clients the most personal and attentive service, and we make sure that all of our clients are 100% satisfied.