Personal Finance

HST rebate for Substantial Renovation

  • Last Updated:
  • Apr 8th, 2021 11:44 am
[OP]
Newbie
Nov 14, 2014
43 posts
14 upvotes
SK

HST rebate for Substantial Renovation

I will soon be moving into my "new" home that has undergone a substantial renovation: All walls were gutted down to the studs, some walls removed, new ones added, entire kitchen and all bathrooms removed and replaced, all new appliances, all new windows, new hot water tank, removed attic insulation and replaced it with new, replaced wood fireplace with electric. This renovation seems to meet CRA's definition of "substantial" and I should be able to apply for the GST/HST new housing rebate. I am finding their website confusing though and need some help identifying exactly which forms to fill in. The house is in Ontario and land+house value will be over the $450k they identify to qualify for the GST portion (from what I understand).

Can anyone confirm if this is all I need to do?
1. Get an appraiser to assess the market value of the house + land.
2. Fill in this Construction Summary Worksheet (Would be fairly straightforward as understand that all expenses invoiced by contractor can be entered on the same row and don't need to break down by type - ie. drywall done by contractor goes on same row as flooring done by contractor)
3. Fill in this GST191 Ontario Rebate Schedule
4. Fill in this [url=file:///C:/Users/happy/Downloads/gst191-19e%20(1).pdf]GST/HST New Housing Rebate Application for Owner-Built Houses[/url] (Understanding that I don't qualify for this portion of the rebate)

Do I send supporting documentation (eg. invoices/receipts, drawings, anything else) along with the application or only if requested for audit? Any suggestions on what I need to do to ensure this is processed in a timely manner and will be successful?
4 replies
Deal Addict
User avatar
Dec 24, 2007
1554 posts
1854 upvotes
BC
I think you are mistaken... GST/HST rebate is on new housing or substantially renovated housing that is under $450,000. The rebate starts being phased out beginning at a value of $350,000 and is zero when the value is over $450,000.
[OP]
Newbie
Nov 14, 2014
43 posts
14 upvotes
SK
WetCoastGuy wrote: I think you are mistaken... GST/HST rebate is on new housing or substantially renovated housing that is under $450,000. The rebate starts being phased out beginning at a value of $350,000 and is zero when the value is over $450,000.
It looks like for houses in Ontario over the $450,000 max it is still possible to claim the federal portion of the HST. Although I do find these forms confusing so it's possible I'm not understanding them correctly.

Excerpt from RC4028
Ontario new housing rebate for owner-built houses
An Ontario new housing rebate may be available even if the fair market value of the house is $450,000 or more.
You are eligible to claim an Ontario new housing rebate if you are an individual who paid the HST to build or substantially renovate a house, build a major addition that forms part of a renovation of your house, or convert a non-residential building to residential use, that house is located in Ontario and is for use as your, or your relation’s, primary place of residence, and either:
you are eligible to claim a GST/HST new housing rebate for some of the federal part of the HST
the only reason you are not eligible to claim a GST/HST new housing rebate for some of the federal part of the HST is that the fair market value of the house is $450,000 or more
The maximum Ontario new housing rebate amount for owner-built houses depends on whether you paid the HST on your purchase of the land. The rebate is limited to a maximum of $24,000 if you paid the HST on the purchase of the land, and $16,080 if you did not.
Deal Addict
User avatar
Dec 24, 2007
1554 posts
1854 upvotes
BC
Okay...looks like it's a Ontario rule regarding a new housing rebate. The Federal portion relating to GST is not eligible.

RC4028(E) Rev. 20 says

"If the house is located in Ontario, in addition to filling out Form GST191-WS and Form GST191, you can use Form RC7191-ON, GST191 Ontario Rebate Schedule, to calculate your Ontario new housing rebate."
Deal Addict
Sep 5, 2009
3102 posts
1220 upvotes
happyflower25 wrote: I will soon be moving into my "new" home that has undergone a substantial renovation: All walls were gutted down to the studs, some walls removed, new ones added, entire kitchen and all bathrooms removed and replaced, all new appliances, all new windows, new hot water tank, removed attic insulation and replaced it with new, replaced wood fireplace with electric. This renovation seems to meet CRA's definition of "substantial" and I should be able to apply for the GST/HST new housing rebate. I am finding their website confusing though and need some help identifying exactly which forms to fill in. The house is in Ontario and land+house value will be over the $450k they identify to qualify for the GST portion (from what I understand).

Can anyone confirm if this is all I need to do?
1. Get an appraiser to assess the market value of the house + land.
2. Fill in this Construction Summary Worksheet (Would be fairly straightforward as understand that all expenses invoiced by contractor can be entered on the same row and don't need to break down by type - ie. drywall done by contractor goes on same row as flooring done by contractor)
3. Fill in this GST191 Ontario Rebate Schedule
4. Fill in this [url=file:///C:/Users/happy/Downloads/gst191-19e%20(1).pdf]GST/HST New Housing Rebate Application for Owner-Built Houses[/url] (Understanding that I don't qualify for this portion of the rebate)

Do I send supporting documentation (eg. invoices/receipts, drawings, anything else) along with the application or only if requested for audit? Any suggestions on what I need to do to ensure this is processed in a timely manner and will be successful?
I did this last year. Your process is correct, you don't need to send receipts unless you are audited. Many of the forms can be done online in your Service Canada account.
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