New Residential Rental Property Rebates
If you are a landlord of a new residential rental property, it is important to know about the New Residential Rental Property Rebate. When you purchase a residential rental property, depending on your province of residence, you have to pay goods and services tax/harmonized sales tax, or GST/HST/QST. To address the situation and level the playing field, the government introduced the NRRP Rebate. You do not need to be a GST/HST/QST registrant to apply. Individuals may also qualify.
Qualifying for the NRRP Rebate
As a residential landlord, you find yourself at a tax disadvantage because you cannot claim an input tax credit to recoup the GST/HST/QST. According to the Canada Revenue Agency, you can claim the GST or the federal portion of the HST or QST if you meet any of the following criteria:
- You paid the GST/HST/QST when you bought a new or significantly renovated residential building, an interest in the complex, and the complex or complex units leased as a residential property.
- You’re a builder and funded the GST/HST/QST on the self-supply of a residential building, or you paid for an addition to a residential building with multiple units leased as a residential property.
- As a builder, you funded the GST/HST/QST on the self-supply of a residential building or paid for an addition to a residential building with multiple units, and were involved in a sale that is tax exempt and the tax-empty multi-year lease of land is covered by a written contract.
- You’re a corporation that looks after co-operative dwellings and funded the GST/HST/QST on the purchase of a newly built or significantly renovated residential building, or you look after the builder’s interest in the building and rent units for residential use for at least a year.
- You’re a co-operative dwelling and funded the GST/HST/QST on the self-supply of a unit zoned as residential or for the addition to a residential building with multiple units, and you rent units for residential uses for at least a year.
- You funded the GST/HST/QST on the self-supply of land that you also rent to someone else for at least a year to use as a residence
Do you qualify for the NRRP Rebate
If you think you qualify and have not received your rebate, contact us for a solution.