Question about HST rebate

[cocacola]

Hi,

I read few posts about HST rebate but I'm still confused.
So I guess HST rebate goes to the builder (for new home), but am I supposed to apply for HST rebate to CRA after the closing day? And this rebate directly goes to the builder?

Or I don't need to worry about HST rebate as it will take care of by the builder?

Thanks

[xdarrylx]

The builder will apply for all HST rebates on your behalf. You don't have to do anything because you aren't eligible to receive anything. Sucky, but that's the way it goes!

[foxborough]

When you signed your Purchase Agreement, you agreed to assign the HST rebate to the builder. The price of your home is reflective of this assignment. You will complete the paperwork from CRA to assign the HST when you meet with your lawyer for your closing.

[cocacola]

Originally Posted by foxborough

When you signed your Purchase Agreement, you agreed to assign the HST rebate to the builder. The price of your home is reflective of this assignment. You will complete the paperwork from CRA to assign the HST when you meet with your lawyer for your closing.

Thanks guys!!

[kisaki]

Originally Posted by cocacola

Thanks guys!!

Are the home buyers eligible for HST rebates on extras? If the house price was below $400 there is still room ...

[foxborough]

No, you are generally not eligible for HST rebates on extras. There are clauses in your purchase agreements that cover this. The price that you paid for the extras will be reflective of the HST rebate.

[kisaki]

Originally Posted by foxborough

No, you are generally not eligible for HST rebates on extras. There are clauses in your purchase agreements that cover this. The price that you paid for the extras will be reflective of the HST rebate.

What do you mean, reflective, Foxborough?
When I payed for extras, I payed 13% of HST on top of the prices

[gerapau]

Originally Posted by foxborough

No, you are generally not eligible for HST rebates on extras. There are clauses in your purchase agreements that cover this. The price that you paid for the extras will be reflective of the HST rebate.

Are you sure? My understanding is that you are eligible for HST rebates on everything, including any extras, up to $400,000. So if your new home had a base price of $350,000 and you added $50,000 in extras then you would be eligible for the full $24,000 HST rebate. Of course, many new homes cost more than $400,000 before extras so in those cases there would be no rebate on the extras but if the base price is under $400K then you will see some rebate for the extras.

[cocacola]

Originally Posted by gerapau

Are you sure? My understanding is that you are eligible for HST rebates on everything, including any extras, up to $400,000. So if your new home had a base price of $350,000 and you added $50,000 in extras then you would be eligible for the full $24,000 HST rebate. Of course, many new homes cost more than $400,000 before extras so in those cases there would be no rebate on the extras but if the base price is under $400K then you will see some rebate for the extras.

and how about HST from design selection upgrades? design selection upgrades were not included in the base price. am I eligible to get HST rebate for design selection upgrades? or simply, I don't pay HST for design selection upgrades??

[gerapau]

Originally Posted by cocacola

and how about HST from design selection upgrades? design selection upgrades were not included in the base price. am I eligible to get HST rebate for design selection upgrades? or simply, I don't pay HST for design selection upgrades??

I may have been misleading when I said that you are eligible for the rebate. As others have said, normally you assign the rebate to your builder. But if the base price of your home costs under $400K then you should not be paying full HST on any extras (design center included) up to the $400K mark. Once you reach the $400K mark then you pay full HST on any extras.

The net effect is that on anything, including any extras or design center purchases, you should only pay 2% on the first $400K for your home. You will then pay 8% HST on anything over $400K.

This should all be laid out in your purchase agreement. The math should be done in there and should be revised when you add any extras.