US Resident (Cdn Citizens) Buying Cdn. Condo - HST Rebate?

Ash · Post by **Ash** » Mon Oct 01, 2012 1:44 am

Hi Everyone,

My wife and I are U.S. Residents (Greencard holders) but are originally Canadian citizens. We purchased a pre-sale condo awhile ago in Vancouver but it doesn't look like we'll be moving into it upon completion and will more than likely rent it out (still weighing this option). We are paying a fairly large tax to HST and if we claim the rebate - its a good chunk of money. We were wondering if we were eligible to deduct this in any kind of way. Currently, we have an option to elect the rebate at close which will affect the net closing costs. We wanted to make sure by doing this election, however, we weren't tripping something that we shouldn't - ie non-resident status, etc.

Has anyone in a similar situation gone through this already? Bottom line is, are we eligible to claim the HST rebate as U.S. Residents purchasing a home in Vancouver? If so, we're assuming that we'll be required to do so through an upcoming Canadian income tax return?

Thanks in advance!

nelsona · Post by **nelsona** » Mon Oct 01, 2012 10:51 am

The HST rebate is only availale to those who make the properry their principal residence. You are apparently not doing this.

So the HST becomes part of your expenses.

Ash · Post by **Ash** » Mon Oct 01, 2012 12:43 pm

If we decide not to rent it but keep it as a part time vacation home (we have family up there) - would we then be fine to claim the HST rebate? Or...does principle residence imply we have to be back in Canada the greater of 182 days out of the year? Just trying to understand any high level pitfalls.

Thanks again for time!

nelsona · Post by **nelsona** » Mon Oct 01, 2012 1:06 pm

It means you are telling CRA that you have moved back to canada, and are thus willing to pay income tax on your world income from that point.

Seems to me I'd rather claim it as an expense on the rent.