How does HST work for new properties

How does HST work for new properties?

Hi there - I am a real estate investor and I want to know how to find out if I have to pay HST on my property?  If so, how much will the HST be for my investment property?AnswerIf a property is new construction (as opposed to resale), HST on the property must be paid to the CRA at the time of title transfer and final closing.   If you are purchasing a new build preconstruction ...
Claiming back the HST on an investment property

Claiming back the HST on an investment property

I purchased a pre construction property and have since closed on it.  What is the process for claiming back the HST for this investment income property?AnswerIf you closed a new construction investment property, you would have a paid a portion of the HST on final closing and registration.  To get this back, you must file for the New Residential Rental ...

HST Rebate and audits from CRA

I am writing in hopes of understanding the HST Rebate rules and regulations a bit better.  I have a friend who has invested in a preconstruction condo, closed on it and thought he did everything by ...AnswerThere is never anyway to guarantee that you will not be audited at a later date by CRA, but there are certainly some pitfalls in the HST Rebate process to avoid. Know that when you get the HST Rebate, ...

Putting a condo in a family member's name and HST due on closing to CRA

I am in the process of completing a sale for a new condo in the financial district of Toronto and my clients have a question about how HST will be applied to this purchase.  My client lives in Dubai ...AnswerGreat question.  You do not have to be Canadian nor have a SIN number or reside in Canada to qualify for the HST Rebate on a new condo.  So, you are free to put the condo in your clients name ...

HST rebate for house in Richmond Hill

Bill again here,   One of my clients bought a preconstruction home for 1.1M in Richmond Hill off plans from a builder.  I saw online that they are not eligible for a HST Rebate.  Can you ...AnswerHi Bill,   The Purchase Agreement for pre-construction houses or condos bought from developer will outline how the builder intends to handle the HST.  The usual case is this:  the builder ...

HST on new housing I have purchased

I purchased a condo about 8 months ago from a builder off a plan as an investment.  It is set to close in a couple of months and my real estate lawyer mentioned something about having enough in my ...AnswerYes, you will need to be prepared to pay a portion of the total HST (the rebate amount) if you are going to be using the property as an investment and not as your primary residence.  This portion ...

Understanding the HST in the puchase of new condo

Hello,   I am posting here because I am new to the real estate investing world and have some questions.  I am considering a preconstruction condo in downtown Toronto, but I do not fully understand ...AnswerHow HST and the HST Rebate work for preconstruction condos is split into 2 scenarios in Ontario:   1. If you buy the preconstruction property and will use it as a primary residence, the builder credits ...

Rebate for HST paid

Hi, my son has paid the HST on a property that he shouldn't have because he is using it as a primary residence. Essentially, the scenario is that by the time it came down to closing, the builder said they ...AnswerHi Susan,   Sorry to hear that the builder did not believe you.  The builders are also audited for HST and are getting more and more careful about who they will cover the HST Rebate for.  ...

What is the exact amount I will owe in HST?

Hello - I have been quoted a variety of ranges in HST that will be due on my investment condo closing at Yonge and Eglinton.  My agreement of purchase and sale says $421,645 CAD.  How much will ...AnswerIf your APS that you signed when you purchased this condo as preconstruction says the purchase price is $421,645.00, the amount of HST that you will owe on closing is: 27,319.25.  Notice that this ...

HST rebate eligibility for my Toronto condo that closed last year

By AshleyHST Rebates0 comments
I purchased a condo in the downtown core of Toronto a while back and it closed in July 2014.  On closing, I paid a huge amount in HST because the condo is an investment property and I rent it out ...AnswerYes, you are still eligible for the HST rebate to recover the amount of HST you paid on closing in July 2014.  You have 2 years from the final closing date to submit your rebate filing to CRA.   ...

How much HST will I owe for my investment rental property?

Thanks for all your reading online.  I have purchased an investment condo in downtown Toronto and I close on it later this fall.  The purchase price on my Purchase Agreement is $385,450.  How ...AnswerIf you are using your new condo for anything other than your primary residence, you will owe approximately $28,600 in HST on your final closing date.  The good news is that if you have a 1 year lease ...

File an HST Rebate

When do I have to file for an HST Rebate?   I have read that there is potential to claim back over $24,000 in a HST housing rebate from the CRA, so it's a deadline I do not want to miss.  I am ...AnswerYes, you are potentially eligible for an HST Rebate if you meet one of the following criteria:    1. You have purchased a new build construction home or condo and are using it as your primary ...
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