Am I eligible to apply for a condo tax rebate?
- Published on Tuesday, 20 December 2016 14:39
- Eliot Chapman
If you have decided to invest in a new condo in Canada, you should know that you might be eligible to get a tax rebate, which could be very useful in reducing the closing costs. You should be aware that in Canada the majority of services and goods are subject to certain taxes, and they also apply when you are purchasing a condo. But, if you do the investment according to certain rules, you would have the possibility to apply for a rebate, and get back a large part of the money you have paid. What you might not know is that the new condo tax rebate Canada
has been introduced a few years ago, and it has the purpose to offer a discount on the sum people pay for buying a newly constructed condo, or other type of property. The property has to be their first home, or their first investment, in case they are buying the space for using it as the office of a business.
What conditions should I meet for being eligible for a rebate?
The first condition you have to meet is to purchase the condo from a builder. In case, you purchase it from a homeowner you might not be able to get it, because the owner might have applied for it. You have to be sure that the property is a residential unit which is held in co-ownership, or is a single unit complex. Also, the condo you purchase, and apply for a rebate has to be your primary residence, or the primary residence of one of your relatives, because other way you would not get the money back. You should keep in mind that you would be the owner of the condo when the process of construction is almost completed. If you want to apply for a rebate for both a property and a land, then you can do it only if you have acquired both of them during the same transaction.
What should I do when filling my application?
For being sure that you have no difficulties in getting the refund, you should ask a professional company assist you during the process, because they have experience and expertise in this domain, and they could help you. Also, you should not wait more than two years from the day you have purchased the condo, because if you apply for the rebate later you would not be eligible to get it. Make sure that the builder has not applied for the rebate themselves, because there are many cases when the constructor is the one who applies for it, and you as an owner are not able to do it anymore. In case you purchase the condo with the intention to rent it and benefit from profit, then you still have the possibility to get the tax rebate, because it would qualify as an investment property. Make sure that the first persons who would occupy the condo, in this purpose are the tenants.