Basic info on HST rebates for new housing
The HST rebate program has been present ever since the Canada Revenue Agency introduced this system in Ontario. If you acquire a new home or a condominium, it automatically becomes subject to the Harmonized Sales Tax. In other words, the HST is payable on the purchase of a new property, but the good news is that first buyers are discounted on a portion of the Harmonizes Sales Tax as long as they meet certain requirements. The CRA has many programs to help buyers counterbalance their expenses, one of the most popular ones being the HST new housing rebate. What you should keep in mind is that the government collects billions in terms of tax revenue, so it is worth hiring a company such as Rebate 4 U to help you get your money back. Filling the necessary forms will only take you a couple of minutes and you have the opportunity of saving thousands in dollars. In what follows, you have fundamental information about the HST rebate program.
The HST rebate
The reimbursement gives homeowners the possibility to recover a part of their goods and services provided that they purchase a newly built home. It is the taxman’s job to determine whether your real estate is owner-built tor acquired from a builder. The HST rebate is available to the property owner of the property and this financial compensation does not take into consideration the place where you live. The refund is worth a considerable deal of money for new homebuyers. More precisely, homeowners have the chance to recover thousands of dollars. The refund is in a way hidden because only the homebuilder or the condominium developer can claim it. What happens is that at closing, you are no longer required to pay the money and reclaim the reimbursement yourself.
Potential HST rebate issues
The abatement program proposed by the Canada Revenue Agency is indeed a beneficial one, but to be eligible for a deduction, you have to respect certain conditions. The primary condition for claiming a new housing rebate is to use the property as a primary place of residence. To put it differently, the property that you own must be lived on a permanent basis. It does not really matter what kind of property you have, as long as it is your primary place of residence. This means that if you have purchased a vacation house, you do not qualify for the reimbursement. Even if after a period of time you do not want to inhabit the house anymore, the initial intention should be the aforementioned one.
How much the HST rebate is worth
The amount you should be getting from the government is equal to $6,300. There is not fix level, but you should pay attention to one very important detail. If your home is worth more than $350,000, you will experience some drawbacks. This does not necessarily mean that you will not receive financial compensation, but simply that you will receive a less substantial one. What you have to do is submit your tax form together with your personal income tax for the year in question.