When do I have to file for an HST rebate?

When do I have to file for an HST rebate?

(Photo credit: John Morgan/Flickr)

(Photo credit: John Morgan/Flickr)

With potential to claim back $42,500 in HST housing rebates from the CRA (depending on where you live), it’s a deadline you don’t want to miss.

But if you’re just getting wind of the HST rebate party, you might be worried it’s too late to qualify or you might think you’ve missed the deadline since income tax filings are now over and done with. Don’t fret. When you file an HST rebate, you are claiming money back from the CRA, but the rebate isn’t tied to the income tax deadline, but there are certain deadlines set for when you have to file your HST rebate.

New housing residence

When you buy your residence as a pre-construction unit, your developer will ask whether you plan to live in the space. If you do, the builder will fill out an application form and claim the HST rebate on your behalf, but you will benefit since the HST rebate amount will be deducted from the price of the condo or home you purchase. It’s also important to note that when you say you plan to live in the property, you plan to move in the near future NOT in retirement.

The property owner won’t have to worry about a deadline since it’ll be in the hands of the developer, but in the scenario where they don’t credit you for the amount, you can still file a rebate application which you have two years to file after you receive legal property ownership, which is when the sale is closed.

New housing investment

If you bought a newly built property as an investment or a rental suite, you are still eligible for an HST rebate. Many people are unaware of this and instead try claiming the HST rebate as their primary residence, but this could lead to the CRA requesting their money back with interest.

You’ll face many similar eligibility rules as someone who bought a newly built property to live in, but with one caveat. You need a one-year rental/lease agreement to qualify that needs to be included with your application. You have two years to file an application and the clock starts ticking at the end of the month that you can start paying tax on your property. But it’s better to claim the rebate sooner rather than later since the property’s market value of affects your possible HST rebate, which means you could receive a lower HST rebate if your property’s market value increases.

Substantially renovated

You are eligible for an HST rebate if you made major renovations to your home, but there is a timeframe on when you must file for one. If you continue to live in your property while renovations are ongoing, you have two years for most of the work to be done and after that date, you have two more years to file a claim.

If you’ve temporarily moved out during the renovations, then moved back in before most of the project is done, the two-year deadline to complete the project starts on the date you’ve moved back in. After that, the same rule applies that the clock starts ticking for two years after the property is in a livable condition. The basic rule of thumb is to apply for the rebate either within two years of the renovations being almost complete or whenever you move in, whichever comes first.

Keep in mind that there are also provincial rebates you could qualify for on top of these federal HST rebates, which Rebate4U can help you claim the largest HST rebate amount possible. 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.

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