A new or substantially rebuilt home is subject to GST/HST. However, if buyers wish to use the property as their primary residence, they may be eligible for a portion of the tax or charge back under the new housing rebate program. Tax accountant Toronto team recommend you to take some time to learn about all of the requirements for qualifying for the Federal Rebate if you plan on buying a new house anytime in the near future.
The purpose of this discount was originally to entice prospective buyers. This rebate allowed many first-time home buyers to buy a house by eliminating the GST.
However, because the requirements for this incentive haven’t altered in a long time, it’s become increasingly difficult to meet the objective of having access to low-cost housing as construction costs have increased dramatically over the years.
Tax Accountant Toronto team experts state that to be eligible for the Federal/Ontario rebate, one must purchase a home to use as their primary residence at the time of agreeing to a contract with the builder. You might be purchasing a property for someone else (a relation only includes parents, siblings, and children).
In the UK, a “particular individual” is anyone who owns a property with two or more owners. Both individuals must intend to use the home as their primary residence if it was sold to two people.
If it’s determined that one of the parties involved in the deal didn’t want to live there full-time, all of the money will be added back to the cost of the house before calculating rebates.
Sometimes, when a builder extends a credit to a buyer, he or she discovers that the rebate is not available to them. The builder must then rely on the buyer’s promise to get back the rebate from the purchasers. Before extending a credit to a buyer, you must comply with all of the regulations and limitations.
Tax accountant Toronto team affirms that this is especially crucial when dealing with buyers that include many people. Make sure the purchase and sale agreement contains language to protect you as the builder if the rebate is rejected later on.
As a buyer, there are times when you might require financial assistance to purchase a new construction property. Consider accepting financial aid in the form of a gift or loan from a family member or friend instead of co-signing the purchase and sale agreement to buy the house. Tax accountant Toronto team state that this will allow you to be eligible for a refund if there were several parties involved in the deal.