A home is a dream of many and especially building a new dream home. Building a home is an expensive investment. It comes with the added cost of GST or HST along with the cost of land, property taxes, and construction. GST/HST can add thousands to the cost of building a home. GST/HST is not charged on the purchase of used properties. GST/HST New Housing Rebate offers relief from this cost. To find My Rebate on new housing purchases you need to understand the basics of taxes levied on new housing. Find out more on GST/HST new housing rebate and the cautions you need to take. You also need to know how GST/HST is calculated, how it works and when the amount can be claimed.
Paying GST/HST on newly built homes is the same as paying sales tax for all the new products you purchase. Depending on the tax regime of your country, you will have to pay GST or HST as tax for new properties. A few housing rebates are available for new homeowners and it is also available for all. You can avail this rebate if your home is listed as a primary residence. You can also avail rebate if you have purchased a share in a cooperative home. The purchase of renovated single, condo, semi, modular, mobile homes or townhouses from builders is also eligible for rebates. If you are building a home on a land that was previously leased or owned by you, you will have to show that 90% of the existing house has been replaced or removed.
You will also qualify for a rebate if you are building a house on a non-residential property owned by you. Renovations undertaken should have increased the floor space by two for the costs to be eligible for the new housing rebate. The calculations for GST and HST are the same. Every state or province has GST/HST rates. When you buy a new home, the builder of the home would have already included GST/HST to the process of the house. This price can be quoted for the mortgage you apply in banks. A percentage of the GST/HST is redeemed as a rebate based on the tax regime of the particular state and province. You will have to fill the particular form to claim the rebate.
There are two types of tax forms for GST/HST new housing rebate. One is for houses purchased from builders and the other is for houses built by owners. You will have to fill information about the place of residence, contact info and more. Within two years of the actual closing dates, you need to submit one of these filled forms along with a personal income tax sheet of the year to claim the rebate. GST/HST new housing rebate is not an automatic one like other incentives and rebates. It is a simple to claim rebate that you must not forget to claim while filing returns. It is a good idea to consult a tax accountant to assist you with taxes and rebates.