It can be extremely hard to learn about all the tax information in Toronto Ontario. These rules and laws are in place to protect you and others, but it can be hard to know how to get the new housing rebate that you may desire. These rebates can help you save money and lower your taxes, but only if you apply for them appropriately and request them.
Renovations
While it may not seem like it, renovations to your current home could help you get these rebates. The restoration itself will have to be substantial enough to upgrade the home to a newer home. If you move back after renovations are finished, you may not be charged HST. This rule can also apply to a rental property, so when you get tenants moved in after the renovation, you wouldn’t be charged HST, either. However, you would need to have clients already living there and require that they live there for six months after the renovation to keep HST taxes at bay.
Newer Homes
In Toronto Ontario, there is a two-stage calculation for new housing rebate options to reduce the tax paid on newer homes that are purchased to be used personally or as a rental property and applies to all homes bought after June 30, 2010. The rebates are identical for personal use and rental property use, but the Federal portion will be reduced to the NIL as costs raise from $350,000 to NIL rebates of $450,000 or more. This rule can be unfair to some, but won’t apply to the maximum rebates of $24,000 on your first $400,000 paid, which means you will still get those rebates no matter how much your home costs.
The new housing tax rebate in Toronto Ontario can be a little confusing for many, so consider the Taxperts Group for help today.