The New Home HST Rebate allows a homeowner to recover a certain portion of HST that was paid on a newly built home or on a substantially renovated home. It is sometimes referred to as the Ontario New Housing Rebate and only applies to the primary residence of the owner.
When a homeowner applies for the New Home HST Rebate, supporting documents must be supplied to CRA and those documents must be kept for several years. Supporting documents must show the name of the homeowner applicant (or a co-applicant who fittingly qualifies).
Canada Revenue Agency administers the Ontario New Housing Rebate and provides guidelines as well as deadlines. Homeowners who submit incomplete applications may be disqualified. Even worse, a failure to satisfy all of the guidelines could result in complete rejection of a rebate.
Qualifying for the HST Rebate
For the HST rebate, a homebuyer must reside in the property and must be the first occupant. To qualify, you must buy a new home, build a new home, or substantially renovate an existing home. If the home is a “co-op” then the unit must be a primary residence. If the home is a new build or a home that has been substantially renovated it must be the primary residence of the purchaser.
Calculating the Rebate Amount
The total amount of HST rebate on a new home is a combination of the federal portion of the HST and the provincial portion of the HST. With various restrictions and limitations, these calculations can sometimes get confusing (and frustrating). That’s why some homeowners decide to get some professional assistance from a rebate specialist. It often streamlines the process from end to end.
Eligibilities for the HST Rebate
To be eligible for the Ontario New Housing Rebate a homeowner must be the principal resident of the purchased property for at least a year after purchase. An IMMEDIATE family member may also be the principal resident – that would include a spouse, parent, or grandparent. A claimant who doesn’t comply with rebate rules and regulations could potentially have to return a rebate.
Non-Resident Speculation Tax
The Ontario Government has implemented a 15% tax on foreign nationals who purchase a residential property in Ontario. Specifically, the tax applies to individuals who aren’t Canadian Citizens or Permanent Residents. This tax also applies to foreign corporations as well as taxable trustees. All of the “resident” categories are explicitly defined in the government’s legislation.
Hiring a Tax Rebate Professional
For some homeowners, a tax rebate professional can be valuable when applying for the New Home HST Rebate. At Rebate4U, our in-house professionals have ongoing contact with CRA and deal with all types of tax rebates.
Rebate4U serves customers throughout Ontario, providing a full service approach. We prepare your application; we assemble all supporting paperwork; and we handle issues that may emerge throughout the application process.
During COVID-19, Rebate4U continues to provide service but with much of our work being done from remote locations. Find out more by calling one of our tax experts at 1-800-610-4510 or visit our website at www.rebate4u.ca.