Be prepared for claiming the GST/HST rebate for substantial home renovations
Virtually everyone knows that the GST/HST applies to the sale of a new property. People who have purchased new homes are eligible for a reimbursement of a part of the GST/HST that is paid upon the closing of the deal. This rebate is available for anyone living in the province who acquires a new home or condominium, but it is provided only if the owner uses the property as the primary place of residence. What is a less known but interesting fact about the GST/HST rebate is that it applies to the substantial renovation of the home. This means that if you have substantially renovated a residential home, you are entitled to a new residential housing rebate. To get your cash back from the government, you should visit http://www.rebate4u.ca/ to get in touch with experts. In this article, we will discuss more about the GST/HST and how it applies to renos.
Basic info on the new housing rebate
Taking into consideration the economic context, it does not really come as a surprise that the vast majority of people avoid engaging in major home renovation projects. The good news is, however, that the Canadian government is encouraging homeowners to do more when it comes to renovations. The rebate that the government set in place will allow you to get back a part of the money spent on renovating their homes.
Let us say that you have bought a home from a builder and you have remodelled it according to your liking. In order to be eligible for the new housing rebate, you must meet certain requirements. Naturally, the property must be located in Ontario and it must be yours to use. Equally important is mentioning that the market value of the house following the renovation process must not exceed $450,000. The house does not have to be entirely redone to qualify for the GST/HST rebate and the refund is an excellent opportunity as it allows you to recover a part of your money.
What the CRA understands by substantial renovation
Prior to starting renovate your home, you have to have a good understanding of what the Canada Revenue Agency means by substantial renovations. If you focus your attention, for example, on the kitchen and the living room but you do not do work to any other place in the house, you will not qualify for the rebate. Regardless of the cost, it will not be considered as a substantial renovation. So, what does? The legislation defines substantial renovation as the elimination or the replacement of the house’s construction components, most of them anyway. Examples include the floor, the walls and the brickwork. Additions are taken into consideration.
Get back into the home improvement game
The matter of fact is that are entitled to about $16,000 if you have modernized your home and have paid the builders out of your own pocket. What is unfortunate is that many people miss this refund due to the fact that the program is not promoted as it should be. If you want to custom-build a property, you can do so and have assurance that you will be able to recover some of the expenses. Yet, you should not go at it alone. Hire trained pros to help you with the application process.