gst drop New home rebate

[SaprykinPWNSjoo]

I know there was a thread a while back but I cannot find it on the search about how to apply for the new home rebate. Where your purchased your house on 6 percent gst and then took possesion after january 08 at 5 percent. I need the forms and if anyone has experience of how long it takes to recieve it.

[troutman]

http://www.cra-arc.gc.ca/E/pub/gp/rc4028/README.html

[FFR]

I filled out the form and sent it in for my house about 3 weeks ago. We have yet to see anything. So obviously longer than three weeks. It was a bit of a pain in the ass to get all the right forms that we had to send in with it. Eventually we just called the office in PEI that is in charge of the rebates and had them walk us through it. Not saying it will be that difficult for everyone, but for us we had to send in an additional form with it that we couldn't find a copy of.

However, if anyone knows how long this takes to recieve the rebate, I would definately like to know!

[Log]

Originally Posted by FFR

I filled out the form and sent it in for my house about 3 weeks ago. We have yet to see anything. So obviously longer than three weeks. It was a bit of a pain in the ass to get all the right forms that we had to send in with it. Eventually we just called the office in PEI that is in charge of the rebates and had them walk us through it. Not saying it will be that difficult for everyone, but for us we had to send in an additional form with it that we couldn't find a copy of.

However, if anyone knows how long this takes to recieve the rebate, I would definately like to know!

You should get yours soon. I got mine last week and sent away for it about a month ago. The check was for $1800 and change and it'll definately help in landscaping this year!

[Bean]

Can somebody refresh my memory on this please? Is there an upper limit that if your home cost x amount you would no longer be eligible for the rebate?

[Log]

Originally Posted by Bean

Can somebody refresh my memory on this please? Is there an upper limit that if your home cost x amount you would no longer be eligible for the rebate?

I wouldn't think there would be a limit.

After all this is just an adjustment on the final GST amount paid on the home.

Also there is a GST rebate available on the construction of new homes. This is only give if the builder doesn't advance you the rebate. My builder advanced us the rebate thus paying the net gst amount upfront.

[Bobblehead]

Originally Posted by Log

I wouldn't think there would be a limit.

After all this is just an adjustment on the final GST amount paid on the home.

Also there is a GST rebate available on the construction of new homes. This is only give if the builder doesn't advance you the rebate. My builder advanced us the rebate thus paying the net gst amount upfront.

Yes, there is a limit.

From the link Troutman posted:

the fair market value of your house (including the building, land, and other structures such as a detached garage) is less than $450,000. It is the fair market value of the land plus the building when substantially completed, not the cost of construction, that must be used for this value;

[onetwo_threefour]

Actually, there is no limit on the transitional rebate (the one that goes from 7 to 6, 7 to 5, or 6 to 5 depending on when you signed your contract.) The GST drop is across the board.

The $450,000 limit in the link troutman posted relates to the principal residence rebate that has been in place for years and the newer rental property rebate.
(If the home is less than $350,000 the rebate is 36% of the GST paid, ( be it 7, 6, or, 5%) If it is over $450,000, the rebate is 0. If the purchase price is between $350K and $450K the rebate goes down on a sliding scale from 36% to 0%.)

Again the transitional rebate applies no matter what the purchase price, even if you're not using the property as a residence. The only thing that is confusing about the transitional rebate, (other than the question of why the feds didn't just tell builders to collect based on the rate at the time of payment rather than the rate at the time of signing the contract, which would have saved all these headaches for everyone) is that if you do get the '36%' rebate in some form, it does affect the calculation of the transitional rebate because the '36%' rebate is calculated based on the rate paid as well.

If all you are worried about is the transitional rebate (i.e 7% to 5% or 6% to 5%...) here is the link

http://www.cra-arc.gc.ca/E/pbg/gf/gst193/gst193-08e.pdf

As far as timelines, most of my clients tell me it's about six weeks, although when one client actually called CRA to ask she was told around six months. (She got the rebate cheque in the mail a couple of weeks later.) I am advising clients 6 to 8 weeks on average, but no guarantees since it is the federal government you're trying to get money out of.

[Bean]

Thank you guys, all of this time I thought that I was disqualified from the rebate but I gather that I got confused from one over the other.

...I hope I haven't exceeded any deadlines or anything.

p.s. CP is great for all sources of information...

[Log]

Originally Posted by Bobblehead

Yes, there is a limit.

From the link Troutman posted:

I was refering to the transitional rebate.

[FFR]

Originally Posted by Log

You should get yours soon. I got mine last week and sent away for it about a month ago. The check was for $1800 and change and it'll definately help in landscaping this year!

Cool. I will be looking for it. Getting married next weekend, so the money will help pay for the honeymoon! Hopefully it gets here this week!

[Bobblehead]

Originally Posted by Log

I was refering to the transitional rebate.

Ahh, OK, sry.

[Log]

Originally Posted by Bobblehead

Ahh, OK, sry.

No problem. I was unaware of the limits for the regular rebate though.

[Mike Oxlong]

Great timing on this thread. I just sent mine in about a week ago as well and was wondering how long it is going to take to get back.

Looks like I have 3 more weeks to go.

[Bertuzzied]

hmmm is it too late to send it in if I purchased my condo back in December 2005? Is this ultimate procrastination or what? Back then GST was at 7% too.

[FFR]

Originally Posted by Kobatuzzied

hmmm is it too late to send it in if I purchased my condo back in December 2005? Is this ultimate procrastination or what? Back then GST was at 7% too.

When did you take possession of your condo? If you purchased it in 2005 (7%) and took possession in 2006 (6%) then you are eligible for a rebate. But if you took possession in 2005, then you are not eligible for a rebate.

[Bertuzzied]

Originally Posted by FFR

When did you take possession of your condo? If you purchased it in 2005 (7%) and took possession in 2006 (6%) then you are eligible for a rebate. But if you took possession in 2005, then you are not eligible for a rebate.

I purchased back in 2004 and got possession in December 2005. Why would I not get it? because the time has lapsed?

My friend also got possession back in 2005 but wasn't a lazy ass and got his $5000.

[ken0042]

Kobatuzzied- how much GST did you pay?

If you paid 7%, then file for the rebate that gives you 36% of the 7% back.

But you don't get the 7% going down to 6% because in both 2004 and 2005 GST was 7%.

I ask how much you paid because when I was looking at building in 2004 my builder charged me 4.48%, and had me sign a thingy saying my GST credit would go back to them.

[FFR]

Originally Posted by Kobatuzzied

I purchased back in 2004 and got possession in December 2005. Why would I not get it? because the time has lapsed?

My friend also got possession back in 2005 but wasn't a lazy ass and got his $5000.

The reason you don't get a rebate for the GST going down is because by government terminology or whatever, your home was completely paid for before the GST went down. You may still be paying your mortgage, but the builder already recieved all their money and submitted it to the government. Don't know if that makes sense. But yes, as said above, if you were not credited for the new home GST rebate already, then you should definately get that back.

[Bertuzzied]

Originally Posted by FFR

The reason you don't get a rebate for the GST going down is because by government terminology or whatever, your home was completely paid for before the GST went down. You may still be paying your mortgage, but the builder already recieved all their money and submitted it to the government. Don't know if that makes sense. But yes, as said above, if you were not credited for the new home GST rebate already, then you should definately get that back.

No i was not credited because it was a revenue property for me and not my principle residence. My brother also bought in the same complex and he only had to pay 3.5% gst instead of 7%(which is what a paid) because he was living in it. I guess it doesn't hurt to send it in.

I did pay 7% GST Ken.