What’s the HST Rebate on your New Home?

There’s a lot of confusion when it comes down to HST charged on new homes and HST rebate calculation.
In today's video, I’m going to clarify that with you using real examples!
If you have any questions or thoughts after watching this video, leave a comment below, and I’ll respond as soon as possible.
#RealEstateTaxTips​ #RealEstateInvestors​​ #CanadianInvesting​ #realestateinvesting #hst #realestatetraining #realestate #realestateeducation #realestateinvestor #canadianrealestate #richhabits #extraincome #taxproblems #incometax #sidehustle #corporation #taxman #taxtips #secondstreamincome #multipleincome #hstrebate #canadianhomes #taxadvisor
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Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your own legal and tax advisors to ensure you get the best advice personalized for you.
The information contained in this video is for general information purposes only.
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[@Katrinablows14]

This is the most clear and concise explanation on this topic I’ve heard in my 20 years realtor business. Awesome work Cherry! I’m forwarding this video to my clients. :)

[@RealEstateTaxTips]

Glad it was helpful!

[@juandelacruz3525]

This is insanely clear! OMG been worrying about that HST - the long weekend really aggravtaes my anxiety before I speak to my lawyer! My closing is in 2 weeks! Thank you for this explanation!

[@RealEstateTaxTips]

Glad it was helpful

[@bikboi4788]

This is the most clear and concise explanation on this topic. Thank you so much!! Signed up for the mailing list and subscribed

[@RealEstateTaxTips]

Awesome! Thank you!

[@badiro5956]

The world needs more Tax Experts like you. We owe you! I guess the GST/HST New Housing Rebate can not be claimed, if it's a "Non-taxable sale of real property to a GST/HST registrant". We can get either GST/HST New Housing Rebate, or file the Election Concerning the Acquisition of a Business. In our case, the first one would result in a tax saving of 24K (HST rebate), when the second would result in a saving of 65K (HST exemption). Am I wrong?

[@floradapat3698]

I purchased a pre construction condo and has the interim occupancy on Jan 2024 and because my intent was to rent this place, I got a tenant who signed a year lease from March 2024 - March 2025. Now, I am doing a final closing Jul 2nd 2024. My question is will i get the whole refund of $24K, the fact that the start of the 1 year lease started in March 2024 and will end March 2025. It is not within the final closing because the interim occupancy was March 2024 not July 2024.

[@michaelphuong7537]

Thank you for that explanation. I have a condo completing soon in ontario soon, and was really confused about this matter. In fact I was under the impression that I will need to pay 13% on top of the purchase price! I was really concerned as this is my first pre-construction purchase. Now after watching your video it helped me understand a little bit more. Thank you

[@RealEstateTaxTips]

Glad it helped

[@AnvishaK]

Hi, Thank you for explaining very well. We paid 24k but we are not aware of claiming it back from CRA. Nobody told us. Now it is 2 years 43 days passed. Can I still get the HST rebate back? Will they consider our file ? Please reply

[@kyungkim8649]

Thanks for your good information. My husband and I bought a pre constructed condo, and my husband will be live there. However the place is not our primary residence, so to solve HST rebate, we decided the condo as invest property. Is it ok to put my husband as a renter?

[@juanitataito9675]

I bought a preconstruction condo unit and is closing soon, can I claim HST rebate after leasing out the unit , I am a Canadian citizen but have been working in the States for over 2 years

[@jorgemeneses5239]

If buying a residential property that has 7 units or more, does not have any unit for commercial activity and the property is not brand new nor has been renovated for resale recently, would HST need to be paid ?

[@RealEstateTaxTips]

Residential resale homes are generally exempted from HST

[@jorgemeneses5239]

@@RealEstateTaxTips thanks for your reply

[@MrCanadatony]

Hi Chan I need to book an appointment regarding rebate and audit please advise

[@RealEstateTaxTips]

Hi, You can reach out to us on realestatetaxtips.ca/contact-us/ Thanks!

[@vivianyoukhanna]

Thank you!

[@jimmymcarthur1040]

hey this video was great I owe you.

[@RealEstateTaxTips]

Glad I could help

[@omid-zz7ns]

Thank you for amazing video,

[@shawnarshad5751]

the video is crystal clear! What kind of camera are you using?

[@RealEstateTaxTips]

Yep. Thanks to my amazing videographer. I'll get him to answer your question for you. I don't even know what kind of camera he's using.

[@badiro5956]

It's her angelic brightness

[@chathudn]

Do you work with clients from BC? Does this rebate available for BC residents as well?

[@RealEstateTaxTips]

Yes we work with clients in BC. In BC it is the GST rebate that is applicable.

[@febyjose2049]

Great explanation!

[@RealEstateTaxTips]

Thanks!

[@FarajiFinance]

What if you are moving into the property but will also rent a portion out , I’m assuming you still apply for the new home rebate ?

[@Akhil5895]

Would you know what the land transfer tax calculation is based on? In your example, is it 541k?

[@RealEstateTaxTips]

Land transfer tax calculation is based on the provincial government's calculation. Feel free to google Ontario Land Transfer tax. If your property is located in Toronto, you have to pay double. Most website provides the calculation.

[@davidburiev]

What happens if I decide to Assign the property to another buyer, before closing date? Who pays the HST?

[@RealEstateTaxTips]

Assignment fees typically is subject to HST. Your buyer is unable to claim it back, unless your buyer is using the property for commercial purpose. In regular residential transactions that I have seen, the sellers typically include that as part of their fees included.

[@arunkakkar7021]

How do we report the capital gains in a corporation? Can you throw some light on that to familiarize the clients? thanks

[@RealEstateTaxTips]

Hi Arun! I have done two vidoes on Capital Gains Tax kzbin.info/www/bejne/kIHbaq2QmJhnr7M kzbin.info/www/bejne/imWVgmmBd9R1iqs Hope this helps! Also, every situation is different, I'd advise you to sit with your real estate consultant/advisor and they'll be able to guide you best. For any questions or consultation, you can contact our office at 416-548-4228 or email us at [e-mail].

[@sunoh5636]

Why do they rebate 24K instead of 65K?

[@RealEstateTaxTips]

Unfortunately that's just the rule... maximum is $24K

[@jnphan3978]

Hi Cherry I bought a pre construction onebed condo unit myself 2 years ago , and is now closing in December, looking to rent out unit as I am not in the country and thinking to add family member to this unit, are we still eligible for HST rebate after renting out unit as 2 co-owners of the unit, thanks

[@kapasound]

Thank-you for the great video. When I tell the developer that I will rent it out. Will I paying for the HST rebate only or both the GST and HST in addition to the new home price?

[@RealEstateTaxTips]

Yes you will pay the entire HST on closing the property, once rented you can submit your HST rebate application form to CRA, along with the required documentation

[@ayishaowais1500]

Hi, Is HST new residential rental rebate taxable? Do i have include this amount in personal taxes in the year received?

[@RealEstateTaxTips]

Because it is related to the purchase price of your property, it is part of the reduction of your adjusted cost base and it is not taxable immediately.

[@ruslanuseinov2744]

Great video! Thank you Would it be fair to say, that there is no difference - whether you are moving in in a recently purchased new condo , or renting to someone with 1+ year contract - you will be getting 24k rebate,. Its just a type of rebate (new housing vs new residential rental) that is different, and the process of applying differs. Did i get this right?

[@RealEstateTaxTips]

You are correct, same dollar value just a different program depending upon if it is your primary residence or a rental property.

[@ruslanuseinov2744]

@@RealEstateTaxTips you’ve mentioned thst for New Residential Rental rebate the owner required to provide 1+ year lease agreement. Will it be required only after the closing date, or at time of interim occupancy as well?

[@dub16100]

Why would I assign my purchase back to the builder?

[@RealEstateTaxTips]

You're not assigning the purchase back to the builder. You're assigning the right to claim the HST Residential Property rebate to the builder to claim on behalf of you. That's the common practice in the local Ontario market. They just assume that the buyer will do so. If not, you have to reimburse the HST amount.

[@sandipkatrodiya7345]

Thank you for this video I do have question . I have pre-construction new house . I am living here ( it’s my primary house ) . As per ontario rules HST rebate assigned to builder . So when I do my personal tax do I get HST rebate on my new house or not ? Please advise Thank you 🙏

[@RealEstateTaxTips]

I am not sure if I get your question right, if HST rebate is assigned to the builder, builder would have already obtained the rebate which is also incorporated in your house purchase price.

[@lawtonau-yong8573]

Hi, I’m in Ontario as well. We have a new build currently within interim occupancy and have a tenant with a 1 year lease. At final closing, do we need to add the 13% HST on-top of the price on our Purchase agreement + the $24K new housing rebate? I thought the HST isn’t included into the original Purchase agreement.

[@RealEstateTaxTips]

Typically HST forms part of the purchase price, net of HST rebate, with the assumption that you would assign the rebate to the builder to claim and you're moving in. If you aren't doing that, you would need to reimburse the builder on the HST rebate, in this case, the $24K. And then after closing, you can submit all relevant paperwork to claim it back.

[@swaggyg6017]

@@RealEstateTaxTips I dont understand, if we are paying 13% HST included in the purchase price, and my mortgage amount, we have to pay 24k at closing again to get it back later? why are we paying that to the builder if its included in the purchase price

[@wxyz1237]

@@swaggyg6017 Only if you did not move in after closing or if you change your mind to rent it out. She clearly illustrate in her example..hope this help

[@sherifsasmr9018]

If im a co owner with another individual (tenants in common) do we only file one new residential income property hst rebate or do i need to split hst paid by 2 and file 2 individual forms for the rebate thank you for the video

[@RealEstateTaxTips]

The form requires you to list out both legal owners

[@goaliev3]

hello, awesome video! i have a quick question if you have the time. If you own the land and hire a gc to build your house. Do you still need to pay the tax even though all of the building material was purchased by myself and would have already received the sales taxes?

[@RealEstateTaxTips]

If you are building your own home, you may be eligible to claim the HST rebate on the material and labour and cost involved in building your own home. Definitely keep track of all your receipts and expenses incurred.

[@aclemeno]

I have a new house construction north of Toronto for seasonal home and airbnb.(80% airbnb) So it will not be my primary residense and will not have a 1 year lease. Is there a possibility to refund the HST? Thank you in advance!

[@RealEstateTaxTips]

Perhaps this video can shred some light - kzbin.info/www/bejne/e5zahKahp8-En6c

[@aclemeno]

@@RealEstateTaxTips Thank you!

[@nimitaw1167]

Is this HST rebate also available in Quebec? (Montreal area)

[@RealEstateTaxTips]

Yes it is available in Quebec, the rebate is broken into 2 parts, GST and QST.

[@ankitjethaliya6776]

I have some questions will you do 1 on 1 consulting?

[@RealEstateTaxTips]

Feel free to connect to my team via our website RealEstateTaxTips.ca and my team will be able to assist you further. :)

[@swaggyg6017]

Say we pay the 13% HST on the condo, of 65k, and im leasing (if im renting it out, i pay the builder 24k at closing and then just getting back the 24k later, did i even get a rebate?), am i not just paying that full 13% HST amount?

[@RealEstateTaxTips]

You're paying full 13% when you are paying the builder $24K. When you get the $24K back, you're getting your rebate back.

[@swaggyg6017]

@@RealEstateTaxTips but i still pay the 13% fully? im not getting rebate on that additional 24K i had to pay at closing? So no real rebate on that 13% HST?

[@RealEstateTaxTips]

@@swaggyg6017 the purchase price of your property listed by the builder has incorporated the rebate amount of $24K. By reimbursing the builder, you are paying the full 13%.

[@swaggyg6017]

@@RealEstateTaxTips I thought HST rebate meant i would be getting a rebate from the 13% i paid on the property

[@badiro5956]

(65 - 24 + 24) - 24 = 41