Understanding the HST Rebate When Buying from a Builder – Part 2
We are continuing our discussion about HST Rebates for the investors. Here, we will talk specifically about the Rental Rebate (GST/HST New Residential Rental Property Rebate) and the requirements that are needed to receive it.
In the meantime, I have good news for the investors. You can get 99% of your money back that you would pay back to the builder. This is, because, once you designate your property as a rental investment property, and pay the HST rebate (or the initial discount offered by the builder) back to the builder, you can get that money back through the Rental Rebate program (GST/HST New Residential Rental Property Rebate). You can apply right away, as you close your condominium and rent it out. It generally takes anywhere between 3 weeks to 3 months to receive the money back from CRA. Not only will you get your money back, you will also rid yourself of a headache from worrying for being audited by CRA, having your Personal Rebate disallowed and owing money to CRA.
Our company, HST Rebates Toronto, are here to help you with any questions about this rebate program. Here are the answers to a number of most common questions that our clients usually ask us.
How much money will I receive back?
The amount of money that you will receive back depends on the sale price of the property. The most important thing to understand is that you will receive back whatever amount you have paid to the builder in the first place.
Can I receive more than what I paid back to the builder?
No.
Can I fill out the application myself?
It is possible to do it on your own, however, the application is a complex one with a number of formulas and sections that have to be filled out precisely. It is worth your time to hire a professional who knows how to do this properly and will get you the approval right away. The application will be rejected by CRA if filled out improperly.
How long do I have to claim this rebate?
You have exactly two years from the time of the closing of the property to claim this rebate.
What are the criteria to qualify for the New Residential Rental Property rebate?
– You must declare this property as a rental investment at the time of closing.
– You must have this property rented out on a one year lease.
– You should not use this property as your primary residence.
– The application should be made within two years from the time of closing.
Are non-residents eligible to receive this rebate?
Yes, absolutely.
Does this rebate program means that I will receive my full HST or part of HST back from the purchase of my property?
Though this program is called ‘HST’ Rebate, in reality, it doesn’t mean that you are receiving back the HST tax or its parts. HST rebate programs are calculated based on complex formulas and percentages that do not concern the 13% tax rate on your property.
How do I get paid?
The CRA can either deposit your money directly onto your account (you will need to provide them with your account information or a void cheque with your application) or mail a cheque to your primary address.
About HST Rebates Toronto:
HST Rebates Toronto is a Toronto-based HST Rebate Consultancy specializing in rebates for investment properties. We help investors get up to $30,000 for their investment/rental condominiums and homes that they bought directly from builders.
We’ve been helping our clients over the last 8 years and have an extensive understanding and experience in all matters related to real estate purchases, sales, and HST/GST new housing rebate questions.
We have extensive knowledge of the Toronto-based residential real estate market and have helped hundreds of investors claim and receive HST rebates for their investment/rental properties. We help our clients with the process of the application that enables them to get a maximum return for their claims.