Real Estate

Selling new built home before 1 year.

  • Last Updated:
  • Jan 29th, 2020 10:53 am
[OP]
Newbie
Sep 23, 2017
48 posts
15 upvotes

Selling new built home before 1 year.

Hello,

We are currently moved in to a new home less than one month. We are not sure if we will be staying here for long, maybe 6 month at most.

Our builder applied for the HST rebate on our behalf and will be receiving the rebate.

Has anyone sold their new built home this soon, and did you have to go through any special arrangements with CRA?
We just don't want them to think that we just moved here as an investment. I understand that in the worst case we will have to pay capital gain on any appreciation.
Would builder forfeit their rebate if we sell before 1 year, and we will have to reapply for HST rebate ourselves?
It does not say anything in the agreement besides that we designate this as our principal residence.

I will be contacting CRA directly today about this situation as well and will report back what they say in case if anyone is wondering.

Thanks for any replies.
4 replies
Newbie
Feb 4, 2014
59 posts
41 upvotes
Montréal
You should be fine. If your intention was to live in the house as your primary residence then any capital gain is not taxable. I don’t know about the HST but I doubt it will change anything, people are free to buy or sell whenever they want...
Member
May 23, 2017
470 posts
248 upvotes
It's likely fine if you don't have a history of constantly buying & selling houses (which may raise a red flag with CRA), however do make sure you can provide solid proof that you did live in it as your principal residence. Typically people recommend: 1) changing the address on all your IDs, 2) getting several deliveries of items sent to your new address over that period of time and keeping the receipts with shipping address info, 3) keeping copies of utility/internet/cable bills clearly showing your name & address.

If you do not own multiple properties (i.e. you sold your previous house when moving into this one) it's probably less of an issue as well as that's a pretty good argument your intention was for it to be a principal residence.
[OP]
Newbie
Sep 23, 2017
48 posts
15 upvotes
Thank you for your responses. It does confirm my logic. I'm keeping all correspondence and copies of ids just in case CRA requests them.
This property is in Ottawa and my 1st purchase in 2 years was a renter before this.
Jr. Member
Aug 21, 2017
130 posts
66 upvotes
fabricatordog wrote: Hello,

We are currently moved in to a new home less than one month. We are not sure if we will be staying here for long, maybe 6 month at most.

Our builder applied for the HST rebate on our behalf and will be receiving the rebate.

Has anyone sold their new built home this soon, and did you have to go through any special arrangements with CRA?
We just don't want them to think that we just moved here as an investment. I understand that in the worst case we will have to pay capital gain on any appreciation.
Would builder forfeit their rebate if we sell before 1 year, and we will have to reapply for HST rebate ourselves?
It does not say anything in the agreement besides that we designate this as our principal residence.

I will be contacting CRA directly today about this situation as well and will report back what they say in case if anyone is wondering.

Thanks for any replies.
I don't think you're eligible for HST rebate if you live in that property for less than a year.

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