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GST New Housing Rebate

 

This discussion is related to the GST New Housing Rebate. Careful tax planning with a Chartered Professional Accountant is necessary in all circumstances. Contact Keith Anderson, BCom, CPA, CA-IT, CITP at (780) 447-5830 if you need advice. 

 

Click HERE for background information on GST and Housing.

 

The new housing rebate is a rebate available to individuals who build or buy a new house. This rebate allows you to recover a part of the GST or the federal part of the HST that you paid on the purchase price or cost of building a new house. If your house is located in Nova Scotia, you may qualify for an additional rebate.

 

What type of housing qualifies?

 

These types of housing qualify for the rebate:

  1. a house that you built, substantially renovated or on which you built a major addition on land that you own or lease (you can do the work yourself or hire someone to do it);

  2. a new mobile home (this includes a modular home) or a new floating home that you bought from a builder (this includes a vendor);

  3. a new or substantially renovated house (including a condominium unit) that you bought from a builder (building and land);

  4. a new or substantially renovated house that you bought where you lease the land from the builder under the same agreement to buy the house and the lease is for 20 years or more, or gives you the option to buy the land;

  5. a share of the capital stock in a co-operative housing corporation (co‑op) that you bought; or

  6. a non-residential property that you converted into your house.

If you renovated your house, built an addition to your existing house, or converted a non-residential property into your house, there are additional rules to determine whether the changes are extensive enough to warrant a rebate. Careful tax planning with a Chartered Professional Accountant is necessary in all circumstances. Contact Keith Anderson, BCom, CPA, CA-IT, CITP at (780) 447-5830 if you need advice. 

 

What type of housing does not qualify?

 

You cannot claim the new housing rebate if the house is not intended to be the primary place of residence for you or a relation. This means that you cannot claim the rebate for the purchase or construction of a cottage or an investment property.

 

However, you may qualify for the transitional rebate. This rebate applies to the purchase of all residential property where you signed the purchase agreement before May 3, 2006 and possession and ownership are transferred to you after June 30, 2006.

 

Forms you have to complete

 

Owner-built houses

 

If you built a new house, substantially renovated your house, built a major addition to your existing house, or converted a non-residential property into your house, you have to complete two  forms:

  1. GST191-WS,Construction Summary Worksheet; and

  2. GST191,GST/HST New Housing Rebate Application for Owner-Built Houses.

Houses purchased from a builder

 

If you buy a new house from a builder or if you buy a share in a co-op, you have to complete Form GST190, GST/HST New Housing Rebate Application for Houses Purchased From a Builder.

 

Mobile homes

 

If you buy a new mobile home, you can claim the rebate using either:

  1. Form GST190, GST/HST New Housing Rebate Application for Houses Purchased From a Builder if you want to claim the rebate only on the mobile home the dealer sold you; or

  2. Form GST191, GST/HST New Housing Rebate Application for Owner-Built Houses if you want to claim a rebate on the mobile home you purchased from a dealer and also on other items (such as improvement to the land or mobile home) you purchased from another vendor.

Careful tax planning with a Chartered Professional Accountant is necessary in all circumstances. Contact Keith Anderson, BCom, CPA, CA-IT, CITP at (780) 447-5830 if you need advice. 

 

 

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Keith Anderson, BCom, CPA, CA-IT, CITP Copyright September 9, 1999 Last Modified :07/16/18 04:17 PM