For homeowners who may be unaware, there are home renovation rebates in Ontario that are available through Canada Revenue Agency. These are HST rebates, with eligibility requirements that every individual must meet. In fact, Canada Revenue Agency has very specific definitions for what they consider to be a “substantial renovation” or a “major addition” to an existing home.
For the purpose of definition, CRA incorporates various types of residential buildings into the rebate program, including those buildings that will be converted to residential. Like other rebate offers, there are time limitations for claiming a rebate. Home renovation rebates in Ontario are sometimes referred to as “new” housing rebates, but they mean “substantial renovations”.
Home renovation rebates in Ontario better defined
A few methods are used for defining a “substantial renovation” or “major addition”. CRA will accept a comparison between the renovated square footage and the total square footage of a building. A renovation less than 90% does not meet the rebate requirements. Another measure is to compare the number of rooms renovated with the total number of rooms (also has to be 90%).
CRA expects property owners to be fair and reasonable with their calculations. It is therefore incumbent on a rebate claimant to present documentation that supports all of the eligibility requirements. When it comes to HST real estate rebates, documentation is critical, mainly because a poor application can quickly jeopardize a rebate. This should be avoided with CRA.
To qualify for an HST rebate, only the property owner may make a claim – this is regardless of who is doing the actual renovation work. As for terminology, the definitions for “major addition” and “substantial renovation” are of utmost importance for both homeowners and builders alike. For eligibility, the definition of 90% (of the pre-existing building) must be adhered to strictly.
Getting help with home renovation rebates in Ontario
Like most things bureaucratic, HST rebates (on real estate) can get a little complicated. This might be the time for some help from a rebate specialist. At Rebate4U, in-house tax experts have been helping property owners for many years. With expertise in the field, and experience dealing with Canada Revenue Agency, Rebate4U helps clients to receive the maximum rebate amounts.
Rebate4U assists clients with more than just “substantial renovations” or “major additions”. The team also provides support for other types of HST rebates (all within the 2-year deadline period).
- for those who have purchased a new-built home or new-built condominium
- for those who have built a completely new home (or made a major addition)
- for those who have turned a non-residential property into a residential home
Over the years, Rebate4U has filed millions of dollars of HST rebate applications. We provide professional service throughout the entire process, and always strive for 100% client satisfaction. To find out more about home renovation rebates in Ontario, call Rebate4U toll free at 1-800-610-4510, or call locally at 416-783-6969. For information about other services, visit the company website at www.rebate4u.ca.