New residential rental property rebate

man_Canada wrote: ↑ Hello Everyone,
Here is what happened.
Booked Condo in 2012 -- $372K
Closing 2019 - Paid $5458.55 as Federal Portion for HST

Now CRA says that the fair value has gone above 450K so i will not get any Federal portion back.

Any thoughts.

Thanks

Lavaris1 wrote: ↑ It happened to my purchase.
Bought for 340, by The time of closing paid 25k plus as HST
But CRA said they would give only 19k, said current market price is 500.

Then I picked up few sold listings of 500 range and said they are all higher floors, premium upgrades, view premiums and said my condo value may be 420.
Then they gave 21

Dayravi wrote: ↑ How long did the entire process take for you?

I’ve spoke to them last week in regard to an application I submitted in December, and they said it’s waiting to be audited and could take 6 months.

ciecie wrote: ↑ same here. bought in 2014, closed in 2019. FMV is over 450k now. so i couldn't get the full amount back.
not only that, but since i signed the leased back program with the builder, i'm consider as self supply, (i.e. builder).
so i might still owe them HST. gosh!!!
anyone have the same situation?
You Might Owe The CRA Thousands Of Dollars!

RolandCouch wrote: ↑ Also curious...how much DID you get back?

ciecie wrote: ↑ i don't have back any plus have to pay for interest i owe because i was deemed to sell it at FMV instead of the purchase price i paid.
everyone . Be careful with leased back agreement. or it's just me because the condo price has inflated so much between 2014-2019

ciecie wrote: ↑ same here. bought in 2014, closed in 2019. FMV is over 450k now. so i couldn't get the full amount back.
not only that, but since i signed the leased back program with the builder, i'm consider as self supply, (i.e. builder).
so i might still owe them HST. gosh!!!
anyone have the same situation?
You Might Owe The CRA Thousands Of Dollars!

Talleregg wrote: ↑ Hi there,
I stumbled upon this thread from a while ago - and I am entangled in the same 'leaseback' trap as well!

Here's my situation:
- Purchased condo with leaseback agreement with builder for $327K and paid $42K in HST upon closing in Jun 2021
- Upon applying for HST Rebate, CRA invoked rule on 'self supply' and asked for FMV as of Sep 2020 (i.e. when lease agreement signed)
- CRA subsequently agreed to FMV in Sep 2020 of $359K, meaning HST owing would be $46K
- CRA agent also advised that I would be eligible for HST rebate of $25K

Fast forward to 3 months and I just received a NOA from CRA with a shocking $27'000 balance owing!!

Looking through the Statement of Adjustments, it appears that they have taken no credit whatsoever for the $42K in taxes that I already paid upon closing. The balance owing is based on the 'new' $46K in re-assessed HST owing, minus $25K in HST rebate, leaving me with an amount owing of $21K + $6K in arrears/interest.

Is this correct? Shouldn't the HST owing essentially be (New HST owing) - (HST Already Paid), i.e. $46K - $42K = $ 4K? If coupled with my $25K HST rebate, I should actually be getting a refund of $21K.

Or is it normal for CRA to apply the 13% HST owing twice over (once for self-supply and again upon formal closing)??