Buying, renovating, and then renting (or selling) existing properties is a significant business. But, what many first-time investors or builders might not know is, “substantial renovations” to existing properties are not tax-free.
If you are in the process of purchasing a new home from a builder, one of the most important decisions you will have to make is whether you (or a relation) will be living in the house or renting it to tenants. The reason this distinction is important is that it determines which HST rebate can be claimed: the New Housing Rebate (NHR) or the New Residential Rental Property Rebate (NRRPR).
It is important that directors of non-profit organizations (NPO) understand their HST filing requirements. It is also important, and potentially advantageous, for them to be aware of the different HST reporting options available.
During the initial HST period in Ontario, large businesses and certain financial institutions are required to repay, or recapture, some of the ITCs on certain very specific costs of the provincial component of HST.
Ontario new housing rebate – An Ontario new housing rebate may be available for some of the provincial part of the HST paid by an individual who purchases newly constructed or substantially renovated housing for use as the primary place of residence of the individual or a relation of the individual.