What is the rebate if I am not moving to the new home and am renting the home to a tenant?
For purchasers who intend to make their new home a rental unit, the Residential Rental Property Rebate allows for the net G.S.T. to be paid, but with a few differences from the New Housing Rebate. In order to claim this rebate, certain conditions must be met. These include: • The purchaser must not be entitled to claim input tax credits in respect of any part of the tax payable on the acquisition of the property. • The rental unit must be a “qualifying residential unit” which means the person applying for the rebate must be the owner of the unit and the unit must be a self contained residence as defined in the Excise Tax Act. • The unit must be held by the owner for the purpose of making exempt supplies (for example, a residential lease). • The unit must be used as a primary place of residence by the tenants and must be so used for at least one year. The Residential Rental Property Rebate must be applied for after closing so the Purchaser must pay the full G.S.T. on closing. Supporting
