Have you Substantially Renovated your Condo?

Where a residential unit is owned under separate title from the rest of the units in a building/complex, it is itself viewed as a separate residential building/complex as referred to in the definition of substantial renovation in the HST New Housing Rebate guide. Therefore if the interior of a residential condominium unit is substantially renovated, the individual owner of this unit is eligible to claim the new housing rebate with respect to the tax paid on the renovation costs.

The determination of whether a residential condominium unit has been substantially renovated (i.e., whether the 90% threshold has been met) does not have to take into account the areas (hallways, reception area, etc.) that are owned in common by all of the residents.

You qualify for this provincial rebate if you bought a new or substantially renovated house (including a new condominium unit) from a builder and you meet the following conditions:

• the condo is located in Ontario and is for use as your, or your relation’s, primary place of residence; and

• you are eligible to claim a Federal GST/HST new housing rebate for the condominium, or you would be eligible if the purchase price or fair market value was less than the maximum threshold for claiming that rebate. This means that a provincial new housing rebate may be available even if a GST/HST new housing rebate for some of the federal part of the HST is not available.

The maximum Ontario new housing rebate amount that is available is $24,000 if HST was paid on the purchase and $16,080 if it was not.

In situations where condominiums are bought directly from the builder, it is likely that the HST rebate has already been accounted for in the purchase price. For more information, visit the section on Investment Property Rebates or contact us now.