Written By: Jasmine Taylor
Have you recently substantially renovated your home? Have you recently purchased a new home from a builder? There may be a rebate that you could qualify for and get some money back from the taxes you paid on the home.
There are two types of new housing rebates:
- GST/HST New Housing Rebate for Owner-Built Houses
- GST/HST New Housing Rebate for houses purchased from a builder
GST/HST New Housing Rebate for Owner-Built Houses
You may be entitled to claim a GST/HST rebate if you:
- Built, hired someone else to build, a house on land that you already owned or leased
- Substantially renovated*, or hired someone else to renovate, your existing house
- Converted a non-residential property into your house (Ex. a church)
- Purchased a new or substantially renovated mobile/floating home, or hired someone to substantially renovate such a home
- The date that the renovation was completed was less than two years ago today
- The home must be your primary residence. Meaning, you own the property and intend to live in on a permanent basis. You may have more than one place of residence, but you are considered to have only one primary residence.
You can claim the federal portion if the fair market value of your home after the renovation is below $450,000. The federal rebate is up to a maximum of $6,300
If the fair market value of home is above $450,000, you can still be eligible for the Ontario rebate. This rebate is up to a maximum of $24,000 if you paid HST on the land purchase and up to $16,000 if you did not.
What Counts as Substantially Renovated?
At least 90% of the interior of the existing house must be removed or replaced to be a substantial renovation. You do not have to remove or replace the foundations, exterior and interior supporting walls, roof, floors, and staircases to meet the 90% test. If you do remove and replace those, the GST/HST paid for doing so is eligible for the rebate. Only liveable areas count toward a substantial renovation. This includes main floor living areas, and finished basements and attics. Livable areas do not include garages and crawl spaces.
An addition to a house is not considered to be a substantial renovation, as the existing house must be renovated. However, if you added an addition and renovated the rest of the home, the GST/HST for the addition may also be eligible.
How to apply for the GST/HST New Housing Rebate
To apply, there are a few forms required to be submitted on the CRA website.
- Form GST191-WS, Construction Summary Worksheet
- You must complete this form first. It will help you to determine the amount of GST/HST you paid during the construction and it will help determine if you qualify. This form is required even if you are only eligible for the Ontario rebate.
- Form GST191, GST/HST New Housing Rebate Application for Owner-Built Houses
- You must fill out this form to claim your Owner built home rebate. If you are entitled to claim a rebate for some of the GST or federal part of the HST you paid, you will calculate your rebate amount on this form. If you are only eligible to claim the provincial part, you must still complete this form, except part D
- Form RC7191-ON, GST191 Ontario Rebate Schedule
- If the house is located in Ontario, you must also fill out this form to calculate your Ontario new housing rebate.
Once complete, you can send the forms all together to:
Sudbury Tax Centre
1050 Notre Dame Avenue
Sudbury, ON
P3A 5C1
GST/HST New Housing Rebate for Houses Purchased From a Builder
There are a few prerequisites for being eligible for the rebate:
- You must purchase a “new home” or a substantially renovated home from a builder. It has to be a newly constructed house, duplex, residential condominium unit, a townhouse, mobile home fully equipped with plumbing, a floating home, or a unit in a co-operative housing corporation. A “new home” may include nearby buildings or additions such as a detached garage or shed.
- The home must be your primary residence. Meaning, you own the property and intend to live in on a permanent basis. You may have more than one place of residence, but you are considered to have only one primary residence.
- If more than one individual owns the home, only one can claim the rebate. The rebate is only available for individuals, not corporations or partnerships.
The federal portion of the rebate is only available if the price that you purchased the home from a builder is under $450,000. You will still be able to claim a maximum of $24,000 for the Ontario Rebate.
Here are some examples of expenses that you can submit to rebate the GST/HST you paid:
- Architectural and engineering – any blueprints, plans, drawing, surveys and labour
- Demolition
- Utility connections- water, sewer, natural gas, electricity and other – includes labour
- Plumbing
- HVAC- furnace, thermostats, ductwork, ventilation, A/C
- Roofing- shingles,
- Masonry – chimney, fireplace, brick/stone wall
- Windows & Doors
- Exterior finish – siding, shutters, posts, eavestroughing, soffit & facia
- Exterior painting
- Drywall
- Flooring
- Ceramic Tile
- Trim Carpentry
- Cabinets/vanities
- Built-in appliances
- Plumbing fixtures
- Lighting fixtures
- Interior decorating – painting, wall coverings, drapery
- Landscaping
- Outdoor patio
- Decks
- Fencing
- Legal fees
- Security system
- Septic system
- Equipment rental
In most cases, when submitting the rebate, you do not have to include the receipts. However, you must hold on to them for at least six years, in case the CRA reviews your claim.
It can take up to six months before receiving your rebate.
This list is not exhaustive. As you can see, there are a lot of eligible expenses. Please call us at 519-538-5541 or send an email to info@gardhousefinancial.ca to enquire about whether you qualify for this rebate. We would be happy to submit the rebate on your behalf.
