redfirm
Active Member
GST/HST rebates:
1) two main types - residential and rental
2) two components to calc formula - federal part and provincial part
3) phasedout after threshold amount (this amount is different for different provinces)
4) common practice (99% of the new home purchases) is for purchaser to assign the rebate to the builder, who in turn reduces the price of the house
5) example for #4 - builder will price the unit at, say $250,000. This price includes GST/HST and is net of rebate if the rebate is assigned back to the builder. Otherwise,
the price of the unit would increase by the amount of the applicable rebate and ONLY IN THIS CASE PURCHASER GETS TO CLAIM THE REBATE ON HIS/HER OWN.
6) This "assigment of rebate" is part of your agreement of purchase and sale ... those of you who bought new units - check your contract, you'll find this (usually one of the schedules at the back)
7) any r/e lawyer knows how to handle this and it is fairly straightforward ... (it does become somewhat complicated when you have mixed live-work townhomes, but that's another story...)
1) two main types - residential and rental
2) two components to calc formula - federal part and provincial part
3) phasedout after threshold amount (this amount is different for different provinces)
4) common practice (99% of the new home purchases) is for purchaser to assign the rebate to the builder, who in turn reduces the price of the house
5) example for #4 - builder will price the unit at, say $250,000. This price includes GST/HST and is net of rebate if the rebate is assigned back to the builder. Otherwise,
the price of the unit would increase by the amount of the applicable rebate and ONLY IN THIS CASE PURCHASER GETS TO CLAIM THE REBATE ON HIS/HER OWN.
6) This "assigment of rebate" is part of your agreement of purchase and sale ... those of you who bought new units - check your contract, you'll find this (usually one of the schedules at the back)
7) any r/e lawyer knows how to handle this and it is fairly straightforward ... (it does become somewhat complicated when you have mixed live-work townhomes, but that's another story...)