GST/HST tax is an area where real property owners and sellers have many questions.
“With increased property values, HST is becoming a bigger issue on the sale of real property, including farmland. See the referenced article for some of the issues to consider when buying or selling real property,” says Scott Merry, CPA, and Senior Manager of Commodity Tax for BDO Canada.
Don’t Flip Out: Understanding GST/HST Housing Rebates
“These are some of the general issues we frequently see – a Reader’s Digest version of potential items to consider,” says George Dube, whose team relies on Scott Merry for his expertise in GST/HST.
Tags: GST/HST, real estate accountant, real estate tax, rebates
I just finished building a new house and received a HST rebate as I planned to sell it for a profit, however I have changed my mind and now will keep it and rent it out. 1) will I have to return the rebate to CRCA 2) If so can I receive a rebate in the future?
The answer to your questions will depend on the type of rebate applied for; a New Housing Rebate for Homes Purchased from a Builder or a New Housing Rebate for an Owner-Built Home. Where it is the former rebate application there is a possibility the Canada Revenue Agency will review the application and deny it if the criteria were not met, such as changing the use from own use to rental. If it was the latter rebate it is likely the criteria has been reviewed by the CRA and no additional review would occur.
Based on the information provided you may be entitled to a different rebate if your first application is denied.