Real Estate

HST Housing Rebates - Update

  • Last Updated:
  • Aug 1st, 2022 5:55 pm
Deal Addict
User avatar
Apr 12, 2013
2924 posts
1908 upvotes
Moon
TVBuddies wrote: Is every application audited or they just select randomly
No clue, given how many of these are submitted my guess is its random, but the government has already said they are funding the CRA more in this specific area, I would prepare to be audited.
Koodo, Public Mobile, Lucky Mobile Customer
Jr. Member
Nov 15, 2019
116 posts
50 upvotes
When you apply for an HST rebate, they are flagged for audits if there is an issue with an application, and also randomly.

In addition, I have seen HST housing rebate audits several years after a closing, when CRA wants to make sure that the purchaser was actually living in the property.
Member
Mar 3, 2021
326 posts
194 upvotes
TorontoHSTRebates wrote: When you apply for an HST rebate, they are flagged for audits if there is an issue with an application, and also randomly.

In addition, I have seen HST housing rebate audits several years after a closing, when CRA wants to make sure that the purchaser was actually living in the property.
How do they audit though? Hydro bills, wifi bills, driver license, tax bill mailing, what else? I don't assume they have access to your condo system to track delivery XD
Deal Addict
User avatar
Apr 12, 2013
2924 posts
1908 upvotes
Moon
TVBuddies wrote: How do they audit though? Hydro bills, wifi bills, driver license, tax bill mailing, what else? I don't assume they have access to your condo system to track delivery XD
No utilities, its like Delivery receipts, bank statements, any mail from the government etc...
Koodo, Public Mobile, Lucky Mobile Customer
Member
Mar 3, 2021
326 posts
194 upvotes
kangarooz wrote: No utilities, its like Delivery receipts, bank statements, any mail from the government etc...
Interesting as to why no utilities?
Jr. Member
Apr 13, 2019
125 posts
195 upvotes
Data point:
We gutted and enlarged our newly purchased house, moving in during Covid. Belatedly learned that we should be eligible for an HST refund for doing a "substantial renovation."
Used the government guides to fill out the worksheet and application. It was tedious and repetitive, but not onerous.
Uploaded it through CRA's My Account on March 20, 2022.
Received a mailed assessment notice that the application was approved two days ago. The $16,080 appeared in my account today, April 7, 2022.
I'm impressed.
Deal Addict
User avatar
Apr 12, 2013
2924 posts
1908 upvotes
Moon
TVBuddies wrote: Interesting as to why no utilities?
Sorry for the 5 months late response but it was specifically told to me in the letter. Only the CRA would know why or maybe anyone else can chime in on this?
fireseeker wrote: Data point:
We gutted and enlarged our newly purchased house, moving in during Covid. Belatedly learned that we should be eligible for an HST refund for doing a "substantial renovation."
Used the government guides to fill out the worksheet and application. It was tedious and repetitive, but not onerous.
Uploaded it through CRA's My Account on March 20, 2022.
Received a mailed assessment notice that the application was approved two days ago. The $16,080 appeared in my account today, April 7, 2022.
I'm impressed.
Thats interesting so 16,080 is the total HST you were charged for the renovation? Did not know that was even a thing, what is the threshold for a "Substantial renovation"?
Koodo, Public Mobile, Lucky Mobile Customer
Member
Sep 14, 2009
291 posts
574 upvotes
kangarooz wrote: Sorry for the 5 months late response but it was specifically told to me in the letter. Only the CRA would know why or maybe anyone else can chime in on this?
I got audited a few months back as well.

They specified no utility bills. My guess is a lot of people in the past just register a utility account as proof, but don’t necessarily reside in the property.
From my experience, any banking related mail or statements work. Online purchases shipped to that address also worked.
Jr. Member
Oct 18, 2021
152 posts
183 upvotes
fireseeker wrote: Data point:
We gutted and enlarged our newly purchased house, moving in during Covid. Belatedly learned that we should be eligible for an HST refund for doing a "substantial renovation."
Used the government guides to fill out the worksheet and application. It was tedious and repetitive, but not onerous.
Uploaded it through CRA's My Account on March 20, 2022.
Received a mailed assessment notice that the application was approved two days ago. The $16,080 appeared in my account today, April 7, 2022.
I'm impressed.
Wow that's fast. I didn't know you can upload the HST rebate form on My Account.
I mailed in a HST rebate for my condo investment back in mind February and I still haven't heard back yet. Is it supposed to take this long through snail mail? Any ideas or suggestions on how I can follow up on status?
Jr. Member
Apr 13, 2019
125 posts
195 upvotes
kangarooz wrote: Thats interesting so 16,080 is the total HST you were charged for the renovation? Did not know that was even a thing, what is the threshold for a "Substantial renovation"?
No, $16,080 is the max refund amount for a substantial renovation.
If you also pay GST to buy land, the max rebate is $24,000.

A substantial renovation is:
A residential complex that has been substantially renovated is generally afforded the same GST/HST treatment as a newly constructed residential complex, including eligibility for the new housing rebate. Extensive modifications must be made to meet the definition of substantial renovation.

Pursuant to subsection 123(1) of the Excise Tax Act (the Act), the term “substantial renovation” of a residential complex means:

the renovation or alteration of a building to such an extent that all or substantially all of the building that existed immediately before the renovation or alteration was begun, other than the foundation, external walls, interior supporting walls, floors, roof and staircases, has been removed or replaced where, after completion of the renovation or alteration, the building is, or forms part of, a residential complex.
Details here.
Jr. Member
Apr 13, 2019
125 posts
195 upvotes
NickyNate wrote: Wow that's fast. I didn't know you can upload the HST rebate form on My Account.
I mailed in a HST rebate for my condo investment back in mind February and I still haven't heard back yet. Is it supposed to take this long through snail mail? Any ideas or suggestions on how I can follow up on status?
Sorry, I don't have any suggestions other than phoning them.
Good luck.
Jr. Member
Nov 15, 2019
116 posts
50 upvotes
NickyNate wrote: Wow that's fast. I didn't know you can upload the HST rebate form on My Account.
I mailed in a HST rebate for my condo investment back in mind February and I still haven't heard back yet. Is it supposed to take this long through snail mail? Any ideas or suggestions on how I can follow up on status?
The application is likely facing an audit.
Jr. Member
Oct 18, 2021
152 posts
183 upvotes
TorontoHSTRebates wrote: The application is likely facing an audit.
Yup, I gave them a call the other day and it is indeed under audit. CRA said they have 60 days to audit this, so will just have to wait and see.

Any idea what they could be looking at? Assuming I completed my forms correctly, I guess they are validating whether the rental agreement is legit? Just not sure what they can audit, since all the required documents are already provided upfront.
Deal Addict
Aug 7, 2019
1240 posts
395 upvotes
JacobC5117 wrote: Two questions regarding the New Residential Rental Property Rebate (NRRP):

1. Does the one-year period for the rebate apply after interim occupancy or when the unit closes?
2. Does the one year period have to be proven through a lease agreement of at least one year? Or can we show that we've had the unit leased out for at least a year but with multiple leases?

Thanks in advance.
Was looking through the thread and say that there were these two great questions that were not answered.

Also, a question from myself. Can the person that you lease to be a, "relation"?
Jr. Member
Nov 15, 2019
116 posts
50 upvotes
You need one tenant in the property. If you have multiple tenants on short-term leases, you will not be able to obtain the rebate.

Not sure what scenario you are looking at. Usually if a relation (as defined in the legislation) is living in the property, you would apply for the owner-occupant rebate.
Newbie
Jul 29, 2022
1 posts
Hi were you able to get back your money and how much time it took for you ?

I just checked my application too is under audit and was wondering when can I expect to receive the money .
Jr. Member
Nov 15, 2019
116 posts
50 upvotes
Tutorguru wrote: Hi were you able to get back your money and how much time it took for you ?

I just checked my application too is under audit and was wondering when can I expect to receive the money .
Once you are contacted by an auditor, you usually have a month to respond to their inquiries.

Top