In Ontario, Harmonized Sales Tax or “HST” is applied on the purchase of all sales and goods, even properties. The additional 13% added on top of the price of a new home or property can quickly add up to tens of thousands of dollars. When purchasing an investment property, the goal is to make a passive income, but the costs can add up quickly. The HST rebate on new condos is a great program offered by the government available to people purchasing new residential properties in Ontario. If you’re planning on buying or have recently purchased an investment property in Ontario, read on to learn why you should consider applying for an HST rebate.
Save On Costs
The most obvious benefit to applying for the HST Rebate on residential rental properties is the savings. A successful applicant can receive a large portion of the amount spent on the purchase back from the government, sometimes reaching up to $30,000. For some property owners, the rebate can simply mean more money in your pocket, for others it is an opportunity to invest more into upgrading the property in the future to make it more attractive to potential tenants, allowing you to maximize your income from the renting.
Avoid Mix Ups with Builder
When purchasing a brand new residential property directly from the builder, they will often assume you will be occupying the property as your primary residence, unless told otherwise. If you are confident you want to have your new condo or home serve as a rental unit, it’s best to share them with the builder right up front.
If you have received a notice from Canada Revenue Agency demanding that you pay back the rebate money that was discounted by the builder because you are not occupying the property as your primary residence, don’t stress, the Rebate4U team may be able to help you. With over a decade of experience dealing with HST rebates in Ontario and communicating with the CRA, our team of experts has the knowledge to help you fix the mistake properly.
It’s Easy with the Professionals
For many people, applying for programs with the CRA is understandably stressful. But, with experts on your side from Rebate4U guiding you through the process, your application can be stress-free and straightforward. We have more than 10 years of experience and have successfully helped thousands of Ontario property owners collect on their HST rebate in Ontario.
Are You Eligible for the Residential Rental Property HST Rebate?
To successfully apply for the HST rebate on new condos, you must fit the specific set of requirements defined by Canada Revenue Agency. The property must be residential which you should have closed on within 2 years of your application. You will also need to provide the appropriate documents to verify your application. For guidance on the documentation and qualifications needed to get your HST rebate, book a consultation with the experts at Rebate4U.
We’re here to answer all your HST Rebate questions.