Can I Claim an HST Rebate on a Rental Property I Built or Bought in Ontario?
Whether you can claim an HST rebate on a rental property depends on the facts of your project, so it is worth confirming with a lawyer. Buying a finished unit from a builder and building one yourself are different situations, and the answer can change between them.
If any part of the property will be rented out, one point you can check now is whether your municipality requires a licence or registration for a rental unit, which depends on the local municipality's own by-law. How the contract describes the price and the tax charged on it may matter, so it is worth having the contract reviewed before you rely on any claim.
The CRA sets the rules, rates and limits, and they change, so this page does not give figures. Before you sign or file, gather your agreement of purchase and sale or construction contract, invoices and proof of payment, then ask an accountant or lawyer to confirm who should claim, how the rebate is calculated and by when. Keep copies of everything. A later sale of the property raises separate tax questions.
Key takeaways
- Buying a unit from a builder and building one yourself are different situations, so the answer can change between them.
- Keep your contract and invoices, and confirm with a lawyer how they apply to your situation.
- This page gives no rebate rates or limits because the CRA sets them and they change, so confirm current figures before you rely on them.
- A later sale of a rental property is reported on Schedule 3, Capital Gains or Losses.