Can Building that New Canadian Home Save You Tax Money?
Whenever there is an opportunity to find a bargain then it is worth taking a second look at. When the bargain happens to be by saving a few tax dollars then it really is worth paying attention to. Most of us seem to take great satisfaction of being able to find ways where we have to put less of our hard earned money into the hands of the Canada tax department. You just might be able to accomplish that with the new GST/HST New Housing Rebate.
As usual when it comes to tax breaks understanding the potential savings can be somewhat complicated. The concept of this potential tax savings is by way of recouping some of the sales tax that you may have had to dish out when you bought your new house, or had it built or renovated. Of course there is a lot of criteria to be met to qualify.
To give you an idea, the house in which you are making application for must have been your main residence. Plus your application for this rebate must be submitted within two years of the completed renovation or your moving into the house.
Don’t form tunnel vision here thinking that this only applies to having new custom homes built. Take a close look at the renovation factor which could include home additions. It is not the cost of the renovation that is the big decider here but the area of the house that the renovations are affecting. Even if your home suffered a mishap like a fire or flood and the renovation costs were covered by Insurance, the renovations may still qualify for the rebate.
If you have found yourself in a situation where you have paid the sales tax on a new home it would be well worth speaking to a Toronto accountant to see if you are able to qualify for this rebate.
It could be a substantial amount, nearly $40,000 based on a property with total cost less than $450,000, or up to $24,000 for properties costing more than $450,000, although the actual amounts are subject to change at any time the CRA decides to implement new rulings. If you do happen to qualify you receive a non-taxable payment from the CRA you would receive it from the CRA somewhere between 14-16 weeks.
This rebate is just one example of some potential tax savings. We as taxpayers often hear the Government talk so much about all the potential benefits they offer us but they are so complex and hard to determine if they are applicable to us that we just forget about them. This is just one reason why having a Toronto accountant look after your tax interests is such a wise step to take when safe guarding your financial situation.