Although the introduction of HST in Ontario has been a burden to all citizens, there are some programs that offer relief. One is the rebate for New Home Construction or for Substantially Renovated Homes. I am not offering my advice on this rebate as an accountant or tax expert but as a Real Estate Agent who is keen on providing quality service to my clients and ensuring that they are able to take advantage of any program that might be available to them.
I have had occasion to help multiple families with the rebate and would like to offer some simple steps to others who may be struggling with the process. These steps will allow you to easily apply for your rebate and hopefully remove some of the stress.
First, this process is for individuals who have built or substantially renovated their own home, not for individuals who have signed the rebate back to the builder. Second, you have 2 years from the date of occupancy to claim your rebate so please do not wait to complete this process. Third, Substantially Renovated is defined as 90% of the original home has been replaced or improved - essentially a gut.
Gather all of your receipts for any work completed on the lot and home. Appliances and furniture are not to be included. The receipts should have the supplier's name, address, date of invoice, GST/HST number, invoiced amount and taxes paid clearly indicated on each receipt.
Complete http://www.cra-arc.gc.ca/E/pbg/gf/gst191-ws/README.html Construction Summary Worksheet. This document allows you to itemize all work completed by the trades. It gives options for work completed at various rates of GST/HST. If you paid a General Contractor, the amount paid to him/her can be entered on one line, it does not have to be broken down to the trades he/she paid. I like to complete the pdf fillable option as it calculates the rebate for me. This will give you the amount to enter in GST/HST Rebate Application for Owner Built Homes.
Complete http://www.cra-arc.gc.ca/E/pbg/tf/rc7191-on/ Ontario GST/HST Rebate Schedule. This will calculate your total Ontario Rebate. The maximum, if you also purchased the land is $24,000 and if you did not purchase the land or did not pay GST/HST on the land would be $16,080. Enter your rebate or maximum amount on Form GST 191 in step 4.
Complete http://www.cra-arc.gc.ca/E/pbg/gf/gst191/README.html GST/HST Rebate Application for Owner Built Homes. If the home you built is valued at over $450,000 you will not qualiify for a Federal Rebate. This will be calculated on this form but you will still qualify for the provincial rebate as calculated above. Don't forget to sign and date the form.
Mail all three completed forms and attach a proof of occupancy - new driver's licence, utility bill or insurance coverage - to Sudbury Tax Center, 1050 Notre Dame Avenue, Sudbury, Ontario, P3A 5C1.
My clients have seen their rebate cheques in as little as 2 weeks from mailing!