HST in Ontario

[NickelSteve]

Gang,

Any idea if investors can claim a rebate on HST in Ontario for rental properties purchased since July 1st? Does it matter if the property is old or new? Condos? House? Other?

Thanks,

Steve
Sudbury

 

[Dan_Eisenhauer]

If the property is used, there is no HST paid, therefore, nothing to claim.

While I am not in Ontario, I was in NS when HST was introduced. It is the property that warrants the refund, not the use to which it will be put. If you, as an investor, but a new property, you are entitled to the same refund as if you bought the property for your personal use.

 

[RandyDalton]

QUOTE (Dan_Eisenhauer @ Dec 17 2010, 06:57 PM) If the property is used, there is no HST paid, therefore, nothing to claim.

While I am not in Ontario, I was in NS when HST was introduced. It is the property that warrants the refund, not the use to which it will be put. If you, as an investor, but a new property, you are entitled to the same refund as if you bought the property for your personal use.

Hi Dan,

Actually when I purchased my farm property in Ontario HST did not exist but GST did. I would expect the same rules apply and GST was charged on the property if a registered business or farm was operated on it in the past.

Regards...Randy D.

 

[MrHamilton]

Hi Steve, copy-pasted below is my write up on HST in Ontario. I have another post on how to calculate HST as well. Enjoy!





Here`s what I`ve found:

• I already wrote about how to calculate the rebates here
• Next question is who collects the rebate? The investor!
• According to CRA`s rules, if a new construction residential property is to be a `long-term` rental, the investor is entitled to the same rebates and regular consumers but the investor can not assign the rebates to the builder and must apply for them him/herself.
• Since the builder is losing out on the rebates, they`re going to look for an adjustment from the buyer, so the buyer is going to be out of pocket for the amount of the rebates
• To apply for the rebates, you need a statement of adjustments proving the investor paid the full amount of the HST not adjusted for rebates and a signed lease of 12 month lease or more (that`s enough to be considered long-term i guess)
  ETA is six weeks to get your money back.
  But please note: DO NOT SIGN A LEASE LESS THAN 12 MONTH LEASE or else you void your elligibility for the rebate. The first tenant must have a 12 month lease minimum.
  Here are the rebate forms: GST534 and PST RC7000
  
  For more information, I called this number: 1-800-959-8287 and got a live person after the first ring! Good job CRA!
  Good link to CRA

Hope that clarifies things a bit