• by admin
• January 17, 2021

Did you reconstruct or purchase a new house for a builder in Ontario? You may be eligible for up to $24k as GST/HST rebate.

 

You may be eligible to claim up to $24,000.00 as GST/HST rebate if you…

• You are an individual or individuals
• Purchased from the builder or substantially reconstructed your house on your land or on land that you have leased for at least 20 years, for your personal or relatives use as a place of      primary residence
• Either you constructed or hired a contractor to do so
• The fair market value of the house at the time purchase of completion of construction is limited to $450,000.00
• The house can be a mobile home, modular home, or a floating home
• Substantially renovated means 90% of the interior of the existing house must be reconstructed
• Converted a non-residential property into a house
• Built major additions that is at least 100% addition in your leaving space.

Ontario rebate – if you paid HST on the purchase or reconstruction of your house in Ontario, you may be entitled to claim Ontario hst rebate for some of the Ontario part of hst that you have paid or payable on the purchase or reconstruction of your house in Ontario.

If you have purchased or reconstructed your house to rent to individuals for the long-term, and the renters will use the house as their primary place of residence, you may be entitled to claim the GST/HST new residential rental property rebate.

If you are not a builder, You may still be eligible to claim GST/HST rebate on your new house, if you sold the house before you lived in it. However, in this situation, you have to show that at the time of purchase or at the time of the completion of the reconstruction your intention was to use this house as your primary residence.

You are considered a builder if you build the house for the purpose of sale.

You generally have two years to claim this rebate from the date of the purchase or the date of the completion of the reconstruction of your house. Once you apply for the rebate, it may take CRA to process your application from a month to up to six months. All the original documents should have the name of the claimant or the co-owners. You need to keep all the original documents for up to six years.

 

RKB Accounting has expertise in cross-border taxation and has been providing accounting and taxation services for the last fifteen years in Canada and USA. RKB services include incorporating a business on both sides of the border, bookkeeping, sales tax, payroll, and corporate and personal income tax. RKB’s expertise includes cross-border tax planning, long-term tax planning, helping business start-ups, business structure planning, and resolving complex tax matters. RKB a CPA(Delaware), CA(India), and CIA(USA) has over 25 years of experience in accounting and taxation in dealing with various countries in the world.

Disclaimer: Information in the blog/post/article has been presented for a broad and simple understanding. This is not legal advice. RKB Accounting & Tax Services does not accept any liability for its application in any real situations. You need to contact your accountant or us for further information.