HST Rebates

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The HST rebate is a commonly misunderstood topic when it comes to new homes. Did you know that know that unlike resale properties, new homes are subject to HST. The HST rebate is available to purchasers of a new home but depending on your use for the newly built property, you may or may not be eligible.

If buying for your own use then your rebate is automatically applied; builder prices are typically inclusive of the built-in rebate. If you add someone to title who is not an immediate family member you will most likely run into issues and not be eligible so it’s important to be aware of that as well.

Buying for an investment; you will need to pay the HST owed up front, file the lease agreement (minimum of one year) through your accountant to the CRA and fill out the NRRP (New Residential Rental Property) rebate application and Ontario Rebate Schedule to recover both components of the HST paid

Buying for immediate profit or quick flip; you are not eligible for the rebate at all whatsoever. With this in mind it’s important to use this tax benefit to the best of your ability in order to maximize the bottom line of your investment property.

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