Real Estate

New House Rent out 60% in the first year, do I need to pay HST rebate back???

  • Last Updated:
  • Jul 4th, 2018 8:55 pm
[OP]
Banned
Jun 30, 2018
4 posts

New House Rent out 60% in the first year, do I need to pay HST rebate back???

I close a new house last year, and rent out 60% of it in the first year.

Rental income has been reported to CRA already.

Then I sold the property 13 months after I closed it from the builder.

Will CRA ask for the HST rebate back?

I am in Ontario, when I close the property from the builder last year, I put my purpose as my primary residence. And this is the only property that I own.
4 replies
Deal Addict
Jan 12, 2017
1334 posts
662 upvotes
Interesting question.... How would CRA even know that it wasn't occupied the entire year, especially if it was your primary residence? I'm guessing if you didn't report rental income, then you're probably ok?

That's just my guess...
Deal Addict
Jan 12, 2017
1334 posts
662 upvotes
Missed that you reported rent.... I would set the HST aside just in case...
Chickennbeans wrote: Interesting question.... How would CRA even know that it wasn't occupied the entire year, especially if it was your primary residence? I'm guessing if you didn't report rental income, then you're probably ok?

That's just my guess...
[OP]
Banned
Jun 30, 2018
4 posts
I did report the rental income.

Spent quite some money in renovation stuff, and didn't earn much money when selling it, so want to factor in those money as part of the cost.
Chickennbeans wrote: Missed that you reported rent.... I would set the HST aside just in case...
Sr. Member
Dec 8, 2003
953 posts
51 upvotes
My understanding is that if it was a rental unit and someone signed a 1 year lease you would have received the HST rebate anyway (you would have paid it at close and filed for it back once you proved a 1 year lease). So while you may have some explaining to do, my guess is you would be fine either way.

...but speak to a lawyer

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