30,000 Reasons to Invest in a Rental Property

30,000 Reasons to Invest in a Rental Property

rebate-claim-search
 

Claiming the New Residential Rental Property Rebate

 

As its name implies, the new residential rental property rebate is for owners and landlords of new residential rental property and can amount to $30,000.

 

Typically, landlords are not able to claim any good and services tax or harmonized sales tax on their returns for amounts they paid or that were payable on the purchase of residential property.

 

This is because residential properties are exempt from GST. However, the new residential rental property rebate may allow you to claim some GST and/or the federal percentage of HST.

  

Qualifying

 

The first people to occupy the new residential rental property must be tenants; these first occupants cannot include the landlord.

 

The rebate must be claimed with the government — not obtained from the builder — by way of application to the Canada Revenue Agency after closing on the property.

 

To qualify, you must have paid the GST/HST on a purchase of a new or substantially renovated housing complex in a residential building.

 

Each residential unit for which you are claiming an NRRP rebate has to be a qualifying residential unit.

 

Complete the Qualifying residential unit test to determine if your unit qualifies.

  

How to Claim the NRRP Rebate

 

You can make an application within two years after the property closes or sells. All applicants must complete Form GST524, GST/HST New Residential Rental Property Rebate Application.

 

Depending on the specific situation for which you qualify, you may need to complete additional forms and applications. Send all of these applications to the CRA along with any supporting documents that the forms request.

 

If you receive the rebate and then sell the residence within one year, you may have to repay the rebate unless you sell it to a person who occupies it as his principal residence.

 

http://www.cra-arc.gc.ca/E/pub/gp/rc4231/rc4231-e.html#P292_38539

No Comments

Post a Comment