HST Rebate Investment Properties
In July 2010 Harmonized Sales Tax (HST) came into effect to replace the existing Goods and Service Tax (GST). Immediately taxes on new homes and condominiums increased from 5% to 13%. To reduce this increased tax burden on Investors the Federal Government introduced a rebate program that allows Investors to receive up a rebate of up to $30,000 in HST paid on their new investment property.
Who can Apply for the Rebate?
In order to qualify for an HST Investment Property Rebate, the property must be owned by a person or group of people. If the investment property is purchased by a company it will not qualify for the HST Rebate.
What type of properties are eligible?
In order to qualify for the HST Investment Property Rebate program you must have purchased a NEW:
Purchases of Multi-unit Investment properties do not qualify. This includes duplex, triplexes, and apartment buildings.
How long do I have to apply for the rebate?
An Investor has 2 years from the date of closing to apply for the HST Rebate. After this time the HST Rebate is no longer claimable.
Do I need to live in Canada in order to apply?
An Investor does not have to reside in Canada in order to apply for the rebate. If you have brought a new investment property no matter where you live in the world you are entitled to receive the HST Rebate.
What happens if I purchased the property to flip it?
I bought the property to live in, but I am renting it now instead of living in it
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 HST 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 HST Rebate applied to the new home purchase. The Investor will need to apply for an Investor’s HST Rebate, which offsets the HST bill from CRA. Again this must be done within 2 years of purchasing the investment property or the HST Rebate will no longer be claimable.
The Investment Property Rebate is available for the purchase of a newly built investment property or the construction of an investment property that will be rented to tenants.
The property owner may be eligible to claim the rebate.
Yes, this rebate applies exclusively to qualifying rental properties.
No, properties purchased for resale or flipping purposes do not qualify for this rebate.
Typical rebates are approximately $24,000; however, larger rebates may be available depending on the property and circumstances.
Yes, newly built investment condominiums may qualify for the rebate program.
Yes, the property must be rented to tenants in order to qualify for the rebate.
Yes, corporations may qualify for the rebate if all eligibility requirements are met.
No, properties used for Airbnb or other short-term rental purposes do not qualify for this rebate. Additional tax implications may also apply when these properties are sold.
No, resale properties are not eligible for this rebate program.
No, HST registration is not required to claim this rebate.
Yes, eligible property owners may claim the rebate for multiple qualifying investment properties.
Yes, eligible land costs may be included in the rebate calculation.
Yes, rebate applications can only be submitted after the property has closed.
Please contact Access Rebates to discuss the documentation required for your application.
Yes, qualifying assignment sales may be eligible for the rebate.
No. If you intend to live in the property as your primary residence, you may qualify for a different rebate program.
No, renovation costs are not included as part of this rebate program.
Please contact Access Rebates to discuss your specific circumstances and eligibility requirements.
No, this rebate cannot be processed by the builder. The property owner must submit the rebate application after closing.
