It is commonly believed that only those who build or purchase a new home are entitled to a reimbursement of a portion of the Harmonized Sales Tax they paid on the closing of the deal. The fact is that you have the possibility of demanding cash back from the taxman even if you have renovated your home. If you have did a complete renovation of your home in the last couple of years, you can claim the GST/HST rebate on home renovations. There is a number of companies that can show you how to reclaim your money, but it is better to hire one to help you. For help with GST/HST New Housing rebates, please visit http://www.rebate4u.ca/. If you are still confused about the GST/HST rebate, you should keep in mind the following aspects.
What substantial renovations of property means
A real estate that has undergone substantial renovation work are taxable as new residential premises. However, it is important to stress that a facelift does not refer to simply applying a coat of paint. On the contrary, you have to modernize about 80-90% of the home. Substantial renovations refer to the situation when the building is either removed or replaced, but this does not necessarily mean that you have to move the foundation of the house. Drywall work is enough, for instance, counts as an upgrade.
The GST/HST rebate only applies to rentals as well
It does not really matter if you have made major changes to the home you currently live in or a rental property. You still qualify for the GST/HST reimbursement, but it is worth noting that this will happen under a totally different program. Not only will the program will be different, but the forms you will have to fill as well. This is the reason why it is worth having a professional guide you on the way. Regardless of what your situation is, you have about two years from renovating the house to claim the deduction. If you do not respect this time frame, there is nothing else you can do.
Do not be worried about overspending on your remodelling project
If you are planning to embark on a home renovation project, you should not be worried about overspending. You can make the home improvement that you want because the government will give you back a fraction of the cash you spend. While a budget may come in handy, it is not necessary since the GST/HST rebate exists. It is true that a home remodelling project is an expensive endeavor, it is important not to forget that it is possible to compensate for the cost with the help of the rebate program.
The bottom line is that major changes have to be made to qualify as a substantial renovation. With regard to the deadline, you should not forget that you have about two years following the finalization of the upgrades to claim a rebate. Even if you are doing renovation work on an investment property, you are still eligible.