The Ontario New Home HST Rebate is a great opportunity for homeowners who have built a new home or completed significant renovations on an existing home, either on their own or by self contracting to recuperate some of the costs.
However, many property owners struggle with the eligibility requirements when applying for the Ontario New Home HST Rebate. This is also true for homeowners considering the HST Rebate on home renovations. At Rebate4U, in-house tax rebate professionals can clear up all of the uncertainties while they manage your HST Rebate application from beginning to end.
While there are numerous eligibility requirements defined by Canada Revenue Agency (CRA), there are also some fundamental requirements that are important to understand. For one, applicants must occupy the property as their primary residence. As well, with home renovations, no less than 90 percent of the home must be renovated. Finally, all paperwork must be submitted within 2 years.
Primary Residence of the Applicant
When applying for the Ontario New Home HST Rebate, the new property must be the principal residence of the applicant. Failure to ensure this requirement will make the applicant ineligible, and CRA would refuse the rebate application. The applicant’s name and address must appear on public and personal records.
There are certain conditions that make an applicant ineligible. For instance, the new home cannot be intended for “flipping.” As well, the property owner cannot purchase the house for the purpose of renting it out. Finally, the rebate doesn’t apply if the applicant is not the first to occupy the new home as a primary residence.
HST Rebate on Home Renovations
With the HST Rebate on home renovations, a property owner must complete a “substantial” renovation or must alternatively construct a “major addition” onto a home. A “substantial” renovation will essentially create a “new” house.
To be eligible for the HST rebate, the interior of a home must be renovated completely. CRA requires that a minimum of 90 percent of the house be cleared and renovated. A “major addition” to an existing home will also qualify for a rebate (when large enough). The new addition must essentially create a “new house.” For example, adding an additional floor to double the size of a home would clearly qualify.
If you’re not sure whether your home remodel satisfies this requirement, you can contact the team at Rebate4U to help you determine whether the HST Rebate on Home Renovations is right for you.
Deadline for New Home HST Rebates
The HST rebate for a new home must be filed within two years of the purchase or completion of a renovation. The CRA is strict with deadlines, and late filing may jeopardize a claim or even consider the claim ineligible. With Rebate4U, application paperwork is always filed complete and always submitted by the deadline date.
In Ontario, property owners can claim the HST rebate on cost outlays such as land purchase charges, building construction, and interest charges. And while the deadline is critical to any application, it’s also important to complete all the paperwork accurately and supply all requisite supporting documents to the CRA.
Working with the Rebate Experts at Rebate4U
To ensure that your rebate application goes smoothly and without any problems, the team at Rebate4U can handle your application entirely. Our people are highly experienced and will streamline the process, taking away all of the associated pressure and stress so you can maximize your return.