The New Residential Rental Property HST Rebate is a rebate program offered by the Government of Canada for individuals and businesses who purchase or construct new rental properties. The purpose of this program is to help offset the costs associated with purchasing or constructing a residential rental property in Canada, including provincial sales taxes (PST). In order to be eligible for the rebate, an individual must be a resident of Canada and at least 18 years old. Businesses must also meet certain criteria in order to qualify for the rebate.

Eligibility Requirements for the New Residential Rental Property HST Rebate

In order to be eligible for the New Residential Rental Property HST Rebate, individuals must have purchased or constructed a new rental property within the last three years. Additionally, they must have paid for and be the registered owner of the property. Businesses must meet specific criteria in order to qualify for the rebate, including being a GST/HST registrant; having an active GST/HST registration number; and having paid PST on or after July 1, 2010.

What about the Fair Market Value?

In order to qualify for the New Residential Rental Property HST Rebate, applicants must provide proof of fair market value. This includes any statement of adjustments issued by a lawyer or notary that states the difference between the purchase price and fair market value of the rental property. Additionally, documentation such as an appraisal report may be required in some cases.

What are the Benefits?

The benefits of obtaining The New Residential Rental Property HST Rebate include receiving a rebate on PST paid on new rental properties within three years of purchase or construction. Depending on how much PST was paid, individuals and businesses may receive up to $24,000 in rebates. The amount received will also depend on whether you purchased or constructed a single-family home, duplex, triplex or fourplex.

At Brij & Associates, we can help you determine your eligibility for The New Residential Rental Property HST Rebate and provide assistance with the application process. We are experienced in understanding the regulations and requirements associated with this rebate program and have a team of tax professionals ready to assist you.

How to Apply for the Rebate

In order to apply for the New Residential Rental Property HST Rebate, individuals and businesses must first gather all of the necessary documents. These documents include proof of purchase or construction of the property, as well as proof that PST was paid on or after July 1, 2010. Once these documents have been gathered, a completed application form and supporting documentation must be submitted to Revenue Canada. After submission, applicants must wait for approval of their claim; typically this process takes several weeks.

What if I Invest in a Home & Claim It as My Primary Residence?

If an individual purchases a home and claims it as their primary residence, they may still be eligible for the New Residential Rental Property HST Rebate. However, the amount of rebate received will be determined based on how long the property was held before being used as a primary residence. For instance, if the property was held for two years before being claimed as a primary residence, then only two-thirds of the PST paid would be eligible for reimbursement.

We understand that applying for any government rebate can be challenging and time-consuming. That’s why our team of tax professionals is here to help! Contact us today to learn more about The Residential Rental Property HST Rebate and find out if you are eligible. Call Brian at 647 897 5383