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Claiming HST New Residential Rental Property Rebate

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Government tax rebates have many rules and regulations. There so many formalities involved that the process can get confusing. One of the reasons why people get stuck during the process of claiming rebates is the complicated rules and regulations. So it’s important to be clear about all the rules before filling out the application form. The government offers tax rebates for new housing but has many conditions for each of them.

In this article, we’ll talk about the government’s NRRP (new residential rental property) rebate, how it differs from new housing rebate and all you need to know to apply for NRRP tax rebate. But before that, we must find out what is NRRP rebate.

What is GST/HST NRRP Rebate?

It’s available for landlords and property investors, but they must meet some specific requirements. The rebate is available for buyers who rent out their newly bought property and is available for the buyer only. It is not available for the individual(s) paying rent or residing in the property. The buyer is eligible for the rebate one year after the date of purchase.

Eligibility Requirements

  • The conditions necessary for are as follows:
  • The landlord must purchase new or substantially renovated rental property.
  • The landlord who builds their own residential for renting purposes.
  • The landlord made an addition to an existing multi-residential rental property.
  • The landlord who had to account for HST or GST for rental of a residential lot or rental for a trailer park. But the payable tax at the time of purchase must be less than 450,000 dollars for a residential lot and 112,500 dollars for trailer parks.

Now let’s see which part of the GTS or HST is claimable in different scenarios.

  • For single-unit residential complex, residential condominium or lease of land the rebate differs from place to place. In Ontario and British Columbia, the provincial part of HST is paid.
  • For multiple-unit residential complex and Co-operative Housing Corporation, the provincial part of HST is paid in Ontario and British Columbia.
  • For transitional rebates in the years 2006 and 2008, the federal part of the GST and HST are paid.

Difference between New Housing Rebate and NRRP Rebate

New housing rebate when newly constructed or substantially renovated property purchased by an individual. The new property must be the primary residence of the buyer. On the other hand, New Residential Rental Property rebate is offered when new housing is purchased by the buyer exclusively for renting purposes. Time to apply for the new housing rebate is two years while for NRRP the time limit is one year after closing.

Document Related Details

You have to submit all the documents required to CRA. The information about eh required documents is provided with the form.

The rebate claim processing may be denied or delayed if the proper documentation is not submitted. Incorrect calculation of rebate amount and incorrectly filled forms may also be rejected.

Documents to Keep

After you submit all the documents, all records must be kept six years after submission to the CRA. Original receipts, written contracts, invoices, written contracts, agreements and a copy of the completed form are all included.

All claims made are subject to security and audit. If the CRA requests then you have to make all the documents available to them for further checks.

Conclusion-

Finally, it’s advised that you check everything thoroughly. This article has given you an overview of all the things you need to know, but you should always check with your local CRA office for every detail. Keep in mind that HST new residential property rebate claims take time to get processed.

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