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Financing, Mortgages and Insurance What options are best for you and your situation?


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  #1  
Old 2011-03-03, 08:49 PM
Dubberdom Dubberdom is offline
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Default How to calculate hst rebate in ontario?

I will be self contracting on my own land, cant find any decent information or calculators on hst and rebates

Scenario
I pay 150k for land, plus hst
I pay 400k for my house, plus hst
Total 550k plus hst

Can i get a rebate? How to calculate?
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Old 2011-03-03, 09:03 PM
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Looks pretty straight forward to me:
http://www.cra-arc.gc.ca/E/pbg/gf/gs...191-ws-10e.pdf
http://www.cra-arc.gc.ca/E/pbg/gf/gst191/gst191-10e.pdf

Just fill out the forms. For help doing so, I would recommend contacting your accountant.
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Old 2011-03-03, 09:30 PM
Dubberdom Dubberdom is offline
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It's not that straightforward, this is pretty good at calculating GST rebate (there is none since it's over $450k), but not the provincial portion.

scenario 1
I pay $150k for land with no HST (private sale) + $450k (plus HST) for a new house, assuming fair market value of $650k, what is my rebate?
$24k? or less since I did not pay any HST on the land?

scenario 2
I pay $150k plus HST for land, plus $450k (plus HST) for a new house, assuming fair market value of $650k, what is my rebate?
I assume $24k?

I am trying to weight the options of buying a lot from a developer (HST applicable) or buying from a a private seller (no HST), and what the "net" tax difference would be between the two scenarios.
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Old 2011-03-03, 10:12 PM
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You should certainly contact your accountant for assistance.
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Old 2011-03-04, 08:09 AM
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gerapau gerapau is offline
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Quote:
Originally Posted by Dubberdom View Post
It's not that straightforward, this is pretty good at calculating GST rebate (there is none since it's over $450k), but not the provincial portion.

scenario 1
I pay $150k for land with no HST (private sale) + $450k (plus HST) for a new house, assuming fair market value of $650k, what is my rebate?
$24k? or less since I did not pay any HST on the land?

scenario 2
I pay $150k plus HST for land, plus $450k (plus HST) for a new house, assuming fair market value of $650k, what is my rebate?
I assume $24k?

I am trying to weight the options of buying a lot from a developer (HST applicable) or buying from a a private seller (no HST), and what the "net" tax difference would be between the two scenarios.
It still sounds pretty simple to me. On new homes there is a 6% HST rebate up to a max of $24K. Since your new house is worth $450k you would reach the $24k rebate on that alone.

As Greg mentioned though, it would be best to contact your accountant or laywer on this just to be sure.
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Old 2011-03-04, 05:42 PM
oakvillehomeowner oakvillehomeowner is offline
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i suspect if you're buying land and then building a house that you might not get any HST rebate...
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Old 2011-03-04, 09:29 PM
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gerapau gerapau is offline
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From the Ontario Ministry of revenue website (http://www.rev.gov.on.ca/en/notices/hst/04.html).

New housing rebate for owner-built homesA new housing rebate would be provided for owner-built homes where an individual constructs or substantially renovates his or her primary place of residence, or that of a relation of the individual, or who hires another person to do such new construction or substantial renovation.

The maximum amount of the new housing rebate for owner-built homes would depend on whether the individual paid the provincial component of the HST on the land.

Provincial component of HST paid on landWhere the provincial component of the HST was paid on the land, an individual would be entitled to a new housing rebate of 75 per cent of the provincial component of the HST paid on qualifying construction expenses (including land), up to a maximum rebate amount of $24,000. Owner-built homes with qualifying construction expenses over $400,000 would qualify for the maximum rebate amount of $24,000.

No provincial component of HST paid on landWhere the provincial component of the HST was not paid on the land, an individual would be entitled to a new housing rebate of 75 per cent of the provincial component of the HST paid on qualifying construction expenses (not including the land), up to a maximum rebate amount of $16,080 (i.e., 67 per cent of the maximum housing rebate of $24,000).
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  #8  
Old 2011-09-29, 05:32 AM
delhidreamgirls1
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nice dissolution gys ,.
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