If you purchased a newly built condo, but decided you don’t want to live in it full time, you can offset some of your purchase costs with the HST Rebate on New Condos, also known as the New Residential Rental Property Rebate (NRRP Rebate). With every purchase in Ontario, the buyer pays 13% Harmonized Sales Tax. In the case of a newly built condo or rental property, the government offers the NRRP rebate, giving property owners the ability to recover a portion of the money spent on HST back from the government. In many cases, this Ontario HST Rebate adds up to thousands of dollars.
Read on to learn how to successfully claim the Ontario HST Rebate on New Condos when renting.
Rental Agreement & Documentation
To apply for the Ontario HST Rebate for residential rental properties, you’ll need a lease agreement for one year upon closing on your purchase. For your application to be considered, a copy of your lease agreement, statement of adjustments, and agreement of purchase and sales must all be submitted to the Canada Revenue Agency. For help selecting the correct documents, contact the Rebate4U team. With over 10 years of experience helping property owners get back money from the government with the Ontario HST Rebate Program, we know exactly what you need for a successful application.
Timeline of Application
When applying for the HST Rebate on New Condos, you’ll need to submit your application to Canada Revenue Agency within two years of closing, and your rental agreement must be at least one-year long. Late filing or inadequate leases will jeopardize your rebate application. If you’re unsure whether your rental condo is still eligible for the HST Rebate, we recommend contacting one of our HST rebate specialists. Based on our years of experience and relationship with the CRA, we can provide you with the personalized guidance you need.
Fixing the Wrong Application
When buying a new condo, some property owners will mistakenly tell the builder that they are occupying the unit as their primary residence, then later change their mind. In most cases, the builder automatically applies the HST Rebate for a primary residence to your property costs. If you end up using your new condo as a rental property, this could leave you in trouble with the Canada Revenue Agency. If you have received a letter or notice from Canada Revenue Agency asking you to pay back your HST Rebate, don’t panic; call Rebate4U.
Communication from the government can often be scary, but our experts have seen it all before. We can help you correct application mistakes to help you get your rebate situation back on course.
Finding an Ontario HST Rebate Specialist
For the most stress-free and straightforward application process, it’s easiest to work with rebate professionals in Ontario. Using industry expertise, knowledge, and experience, we will streamline your application process and help you maximize your rebate amount. We’re here to answer any and all of your rebate questions.