If you have purchased a newly built home, townhome, or condominium within the last 2 years with the intention of renting out the property, and it has a fair market value of $450,000 or less, then you are entitled to the tax-free Investment Property Rebate of up to $6,300 from the Government.
What type of properties is eligible for the Investment Property Rebate in Newfoundland, Canada?
In order to qualify for the Investment Property Rebate you must have purchased a New (never been lived in before):
Purchases of Multi-unit Investment properties do not qualify. These include duplexes, triplexes and apartment buildings.
How long do I have to apply for the Investment Property Rebate in Newfoundland, Canada?
An Investor has 2 years from the date of closing to apply for the Investment Property Rebate. After this time the Investment Property Rebate is no longer claimable.
Do I need to live in Newfoundland, Canada in order to apply for the Investment Property Rebate?
An Investor does not have to reside in Canada in order to apply for the Investment Property Rebate. If you have brought a new investment property you are entitled to receive the Investment Property Rebate no matter where you live in the world.
What happens if I purchased the property in Newfoundland, Canada to flip it?
What happens if I bought the property to live in Newfoundland, Canada, but I am renting it now instead?
It is very common to change your mind on the use of a property after it is purchased. As life changes, what we originally intended does not always happen. If you purchased a property with the intention of living in it, the builder can apply for an Investment Property Rebate on your behalf. This reduces the price of the home to the purchaser and the taxes owed to the Government by the builder.
In most cases, the home purchaser has no idea this has happened. If you then decide to rent the home instead of living in it, the Investor (homeowner) will more than likely receive a tax bill from CRA for the Investment Property Rebate applied to the new home purchase.
The Investor will then need to apply for an Investment Property Rebate which offsets the bill from CRA. Again, this must be done within 2 years of purchasing the investment property or the Investment Property Rebate will no longer be claimable.