HST Rebate on New Homes: 4 Things You Must Know
If you are a new homeowner, wrapping your mind around how the new housing rebate works can be challenging. If you are wondering how HST is calculated, how it works and who is eligible for a pay back, you are in the right place. Below are things that you need to know about HST that will also keep you enlightened on the topic.
1. Buyers that qualify for an HST rebate
This is probably one of the most important questions that you are asking yourself. Well, the good news is that pre-construction buyers are not the only ones that are eligible for a rebate. If you are a preconstruction condo buyer, constructed your new home from scratch, or just purchased a new home and have yet to move in, you qualify for a HST rebate.
2. Amount of rebate to get against a full HST payment
Generally, the HST sums up to about 13 percent of the amount you purchase your residence for. That being said, you need to also know the percentage of the HST that a rebate covers. There is a scale for this and it is pretty simple.
If your new home cost you less than $350,000, the maximum HST rebate you can get is $30,000. If your property was priced over $450,000, a $24,000 will do. What if you are working with a pre-constructed condo? The figures differ.
If the condo is priced at $500,000 then the HST rebate will be valued at $24,000.
3. Renewed focus on HST rebates
It is worth noting that there has been a shift in focus on how the Canadian Revenue Agency reinforces it. This was motivated by there being instances where there were errors in the auditing or real estate transactions. As a result, the CRA will deny parties a rebate if they take note of any malpractices of misdoings.
However, it does not mean that all is lost if a homeowner is denied a rebate. You can always seek an appeal. It is also worth noting that the recovery of a rebate after denial involves a series of steps. Such may include giving a testimony on the nature of your residence in the premises or changing your address with the Canadian Revenue Agency and on other documents like your driver’s license.
4. HST rebate for investors and end users differ
If you are an investor, it is important to remember that the rebate program that you will be applying for will be different from that of the end users. You should note that an application for a wrong program leads to the denial of a rebate.
What that tells you is that you should be careful with all the moves that you make regarding HST rebates. If you are unsure of anything, it is important that you seek more information regarding the subject.
With the information above, you should be in a better position to explain how HST and rebates works.