The NRRP Rebate is available when GST/HST is paid on the purchase of a newly constructed or substantially renovated residential complex, and the purchaser leases the unit to another person for residential use. Purchasers who rent out a new home so that the first occupant of the new home is a tenant are entitled to the NRRP Rebate but cannot obtain this rebate from the builder. Such Purchasers must apply for the NRRP Rebate after closing. The main condition to qualify for the NRRP Rebate is that the new home is used as a primary residence in the long run by someone.
Some of the important documents needed to apply for the NRRP Rebate are as follows:
- The Statement of Adjustments from closing
- The Purchase and Sales Agreement
- A copy of a lease/rental agreement to show it is rental housing stock (this is key as the intent of the rebate to investor is predicated on this being true - if the purpose of the purchase is to buy and resell, full GST/HST will apply)
- A copy of the insurance policy (owners policy)
For more information about the NRRP Rebate and guidance on preparing the forms and documents for this application, please visit us at http://www.iaccountingservices.com/hst-housing-rebate.html and book your appointment for a free consultation.