GST/HST New Residential Rental Property Rebate

RC4231(E) Rev.10

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Table of contents

• Is this guide for you?
  • GST/HST and Quebec
• What's new
• Definitions
• Which rental properties qualify for the GST/HST new residential rental property rebate?
  • Restrictions
  • Are you a builder for GST/HST purposes?
  • What is a self-supply?
  • What is a qualifying residential unit?
  • Fair market value
• Is your property situated in Ontario or British Columbia?
  • Provincial transitional new housing rebates
• Application types
  • Application Type 6: Lease of building and land
  • Application Type 7: Sale of building and lease of land
  • Application Type 8: Co-operative housing
  • Application Type 9A or Type 9B: Lease of land
• Applying for the rebate
  • Forms to complete
  • Documents you have to send us
  • Documents you have to keep
• Completing Form GST524
  • Section A – Claimant information
  • Section B – Property information
  • Section C – Housing and application type
  • Section D – Rebate calculation for Type 6 and Type 7
  • Section E – Rebate calculation for Type 9A
  • Section F – Certification
• Completing Form GST525
  • Section A - Claimant information
  • Section B – Rebate calculation for Type 6 and Type 7
  • Section C – Rebate calculation for Type 8 – Unit in a co-op
• Completing the provincial rebate schedules
  • Section A - Claimant information
  • Section B – Rebate calculation for Type 6 (single unit)
  • Section C – Rebate calculation for Type 7 (single unit)
  • Section D – Rebate calculation for Type 8 (unit in a co-op)
  • Section E – Rebate calculation for Type 6 and Type 7 (multiple units)
  • Section F – Rebate calculation for Type 9A and Type 9B
• Repayment of the NRRP rebate
• Filing your NRRP rebate application
• GST/HST Transitional rebates
  • 2008 transitional rebate
  • 2006 transitional rebate
  • 2006 and 2008 transitional rebates
• For more information

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Is this guide for you?

This guide provides information for landlords of new residential rental properties on the new residential rental property (NRRP) rebate. It also provides information on how to complete Form GST524, GST/HST New Residential Rental Property Rebate Application, and Form GST525, Supplement to the New Residential Rental Property Rebate Application – Co-op and Multiple Units.

This guide is for landlords who, for residential rental purposes:

• purchased newly constructed or substantially renovated housing from a builder;
• constructed, or hired someone else to build, housing or an addition to housing;
• substantially renovated, or hired someone else to substantially renovate, housing;
• converted a non residential property into housing; or
• made an exempt lease or sublease of land to another person.

This guide is not for you if, for example, you:

• purchased a residential rental property and GST/HST was not payable on the purchase (for example, the purchase of an apartment building that is already occupied by tenants);
• are a builder of housing, or an addition to such housing and you are not considered to have made a self supply; or
• are an individual who purchased or constructed a new house or substantially renovated your existing house for use as your or your relation’s primary place of residence. In this case, see Guide RC4028, GST/HST New Housing Rebate.

GST/HST and Quebec

In Quebec, Revenu Québec administers the GST/HST. If you purchased, constructed, or substantially renovated a residential rental property, or made an addition to such a property in Quebec, you have to file the rebate application with Revenu Québec using their forms. For more information, see the Revenu Québec publication IN-205-V, QST and GST/HST Rebates: New or Substantially Renovated Housing, New or Substantially Renovated Residential Rental Property, available at Revenu Québec or call 1-800-567-4692.

What's new?

We list the major changes below, including changes that have been announced but were not law at the time of printing this guide. If they become law as proposed, they will be effective as of the dates indicated. For more information on these and other changes, see the areas outlined in colour in this guide.

Definitions

Basic tax content — of a property generally means the amount of the GST/HST that was payable for your last acquisition of the property, and for any improvements you made to the property since that last acquisition, less any amounts that you were, or would have been, entitled to recover (for example, by rebates or remissions, but not input tax credits). The calculation for the basic tax content also takes into account any depreciation in the value of the property since you last acquired it (for example, when you purchased it or were last considered to have purchased it, whichever occurred more recently).

Duplex — means a residential complex that contains two residential units under one legal title. For purposes of this rebate, a duplex is a single unit residential complex.

Multiple unit residential complex — means a residential complex that contains more than one residential unit, but does not include a condominium complex. For purposes of this rebate, a multiple unit residential complex does not include a duplex.

Percentage of total floor space — of a residential unit forming part of a residential complex, or part of an addition to a multiple unit residential complex, is the total square metres of floor space occupied by the unit divided by the total square metres of floor space occupied by all the residential units in the residential complex or addition.

Person — means an individual, a partnership, a corporation, the estate of a deceased individual, a trust, or any organization such as a society, a union, a club, an association, or a commission.

Possession — for GST/HST purposes, generally means that you hold, control, or occupy the property. For example, if you pay the property taxes, have the right to alter the land, control entry or access to the property, or pay insurance coverage, you may be considered to have possession of the property.

Purchase price — is the total amount payable for a new residential complex. It does not include provincial land transfer taxes or the GST/HST payable on the purchase price.

Qualifying portion of basic tax content — of a property generally means the basic tax content of the property from which you removed the provincial part of the HST from all of the elements of the basic tax content calculation. For more information, see Technical Information Bulletin B-087, GST/HST New Residential Rental Property Rebate.

Residential complex — includes a building or part of a building in which one or more residential units are located, along with areas that are reasonably necessary for the use and enjoyment of the building as a place of residence for individuals. These include:

• part of any common areas and other appurtenances to the building;
• the land on which the building is situated; and
• the part of the land immediately adjoining the building.

A residential complex generally does not include a building or that part of a building that is a hotel, a motel, an inn, a boarding house, or similar place.

Residential condominium unit — is a residential complex that is used as a place of residence and is, or is intended to be, a bounded space in a building designated or described as a separate unit on a registered condominium or strata lot plan (or similar plan or description registered under provincial law). A residential condominium unit includes any interest in the common areas as well as any interest in land pertaining to the ownership of the unit.

For example, an apartment unit or a townhouse unit is a residential condominium unit for rebate purposes if the unit is:

• for use as a place of residence;
• registered as a condominium unit under provincial law;
• owned under a deeded title separate from any other unit(s) in a condominium building; and
• can be sold separately from the other units in the condominium building.

Residential trailer park — generally means the land included in a trailer park and the buildings on, and appurtenances to, that land if the trailer park has at least two sites and the following three conditions are all met:

• the land, buildings, and appurtenances are reasonably necessary for the use and enjoyment of the sites in the trailer park by individuals residing in or occupying mobile homes, or travel trailers, motor homes, or similar vehicles or trailers, situated or to be situated on those sites, or for the operation of the park;
• 90% or more of the sites are leased, or are intended to be leased, to individuals and continuous possession or use of a site is for at least:
  • one month, for mobile homes or other residential units; or
  • twelve months for travel trailers, motor homes, or similar vehicles that are not residential units; and
• the sites must be suitable for use as a place of residence throughout the year by individuals occupying mobile homes (whether or not the park in fact has mobile homes). The sites must be serviced and accessible for use by a mobile home throughout the year.

If a person has two or more trailer parks that are located right beside each other, the sites in all of the trailer parks are considered in applying the conditions above, and where the conditions are met, the trailer parks are considered to be one residential trailer park.

Residential unit — means:

• a detached house, semi-detached house, row house unit, condominium unit, mobile home, floating home, or apartment;
• a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house, or in a residence for students, seniors, individuals with a disability, or other individuals; or
• any other similar premises;

or the part of such housing listed above that:

• is occupied by an individual as a place of residence or lodging;
• is leased as a place of residence or lodging for individuals;
• is vacant, but was last occupied or supplied as a place of residence or lodging for individuals; or
• has never been used or occupied for any purpose, but is intended to be used as a place of residence or lodging for individuals.

When a residential unit in a building allows direct internal access to another residential unit in the building, with or without the use of a key, both are considered to be one unit. This rule does not apply to a residential unit that is a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house or a residence for students, seniors, individuals with a disability, or other individuals.

Self-contained residence — means a residential unit that:

• is a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house or in a residence for students, seniors, individuals with a disability, or other individuals; or
• contains private kitchen facilities, a private bath, and a private living area.

Single unit residential complex — means a residential complex that does not contain more than one residential unit, but does not include a residential condominium unit. For purposes of this rebate, reference to a single unit residential complex includes a residential complex containing not more than two residential units (for example, a duplex).

A single unit residential complex generally includes other structures near or adjacent to the unit, such as detached garages or sheds. It also includes the land subjacent and immediately contiguous to the unit that can reasonably be regarded as contributing to the use and enjoyment of the unit as a place of residence. We consider that up to half a hectare (1.23 acres) of land may be reasonably necessary for the use and enjoyment of a unit. However, in some cases, more than half a hectare of land may be considered to form part of the complex (such as the minimum lot size imposed by a municipality or land necessary for you to access public roads).

Which rental properties qualify for the GST/HST new residential rental property rebate?

You generally pay the goods and services tax/harmonized sales tax (GST/HST) when you purchase a new residential rental property from a builder. If you are the builder of a residential rental property, or if you make an addition to a residential rental property, you are generally considered to have made a self-supply and paid tax when you lease or occupy the first unit of the property as a place of residence (see “What is a self-supply?”).

As a residential landlord, you cannot claim an input tax credit (ITC) to recover the GST/HST paid or payable on the purchase of a residential complex or that you accounted for on the self-supply of the complex because long-term residential leases are exempt from GST/HST. However, you may be eligible to claim the new residential rental property (NRRP) rebate for some of the GST or the federal part of the HST if you:

• paid the GST/HST on the purchase of a newly constructed or substantially renovated residential complex or an interest in the complex and you lease the complex or units in the complex to another person for residential use by an individual;
• are a builder and you paid or accounted for the GST/HST on the self supply of a residential complex or an addition to a multiple unit residential complex that you lease to another person for residential use by an individual(s);
• are a builder and you paid or accounted for the GST/HST on the self-supply of a residential complex or an addition to a multiple unit residential complex and you made an exempt sale of the building and an exempt long-term lease of the land under a single written agreement;
• are a co‑operative housing corporation (co‑op) and you paid the GST/HST on the purchase of a newly constructed or substantially renovated residential complex or an interest in the complex from a builder and you lease units in the complex for long‑term residential use;
• are a co‑op and you paid or accounted for the GST/HST on the self‑supply of a residential complex or an addition to a multiple unit residential complex and you lease units in the complex for long‑term residential use; or
• paid or accounted for the GST/HST on the self‑supply of land that you lease to another person for long‑term residential use by an individual(s).

Restrictions

The NRRP rebate will not be paid in the following situations:

• you are an individual who is entitled to claim the GST/HST new housing rebate for a newly constructed or a substantially renovated residential complex, whether the rebate is paid to you or credited to you by the builder; or
• you are entitled to claim a rebate for land leased to a lessee who subleases the land for residential purposes.

If you are entitled to claim the public service bodies’ rebate, you are not entitled to claim the NRRP rebate for the GST or federal part of the HST.

Note
A public service body (PSB) in Ontario or British Columbia may meet the conditions for claiming both a provincial NRRP rebate and a provincial PSB rebate for an amount of HST that it paid. In this case, the PSB is entitled to claim either the provincial NRRP rebate or the provincial PSB rebate, whichever has the higher rebate rate.

Any amount of tax that you are entitled to recover by way of rebate, refund, or remission under any other law and any amount of tax that you are not required to pay or remit cannot be included in determining the amount of your NRRP rebate.

Are you a builder for GST/HST purposes?

For GST/HST purposes, the term “builder” has a very specific meaning that is not limited to a person who physically constructs housing. You do not have to physically construct or substantially renovate a house yourself to be a builder for GST/HST purposes.

Generally, you are a builder of a residential complex, or an addition to a multiple unit residential complex, if you:

• build or substantially renovate the complex or you build the addition, on land you own or have acquired by way of lease, or you hire someone else to build or substantially renovate the complex, or to build the addition, on land you own or have acquired by way of lease. However, you are not a builder if your only interest in the land is a right to purchase the housing or an interest in the housing from a builder;
• acquire an interest in the housing when it is already under construction or substantial renovation, or when the addition is under construction, except where the interest is only a right to purchase the housing or an interest in the housing from a builder;
• acquire an interest in the housing before anyone has lived in it and your primary purpose in acquiring the interest is to either sell the house, sell the interest, or to lease the house to a person who will not use the house for their own personal use (for example, you lease the house to another landlord); or
• acquire an interest in a residential condominium unit either before the complex is registered as a condominium or before anyone has lived in it, and your primary purpose in acquiring the interest is to either sell the unit, sell the interest, or to lease the unit to a person, such as a landlord, who will not use the unit for their own personal use.

You may also be a builder if you own, or have an interest in a commercial building that you convert into a residential complex, even where you did not complete a substantial renovation.

Note
An interest in housing generally means any right to the land upon which the housing is being constructed. For example, if you receive title to the land, then you have acquired an interest in the housing. If you enter into a lease agreement for the land, you have generally acquired an interest in the housing.

What is a self-supply?

If you are a builder of a residential complex or an addition to a multiple unit residential complex that you will use for residential rental purposes, you may be considered to have made a self-supply of the complex or addition. If you have made a self supply, you may be entitled to claim a GST/HST new residential rental property rebate.

“Self‑supply” is the term used to describe the situation when a builder is considered to have made a supply of real property and to have immediately repurchased that property.

The self‑supply rules may apply to builders, whether they are registered for GST/HST or not.

If you are a builder of a newly constructed or substantially renovated residential complex, an addition to a multiple unit residential complex, or a residential complex that was converted from a non-residential property, you may be considered to have made a self-supply (to have sold and repurchased the complex or addition) if you:

• lease the complex or a unit in the complex or addition for long‑term residential use by an individual and that individual is the first to occupy the complex or addition;
• make an exempt sale of the building part of the complex and an exempt long‑term lease of the land part of the complex under a single written agreement; or
• are an individual and you are the first to occupy the complex or a unit in the complex or addition as a place of residence.

Note
The self-supply rule may also apply if you lease land to a person who will affix a residential unit to the land or if you lease sites in a residential trailer park. For more information, see GST/HST Memorandum 19.2.3, Residential Real Property – Deemed Supplies.

If you are a builder and you are considered to have made a self‑supply of a residential complex or an addition to a multiple unit residential complex, you are considered to have paid and collected GST/HST, calculated on the fair market value of the complex or addition (building and land) as of the date the self‑supply occurred. You generally have to account for the GST/HST that you are considered to have collected on the self‑supply by reporting it on a GST/HST return, whether you are a GST/HST registrant or not.

If you are entitled to claim an NRRP rebate, the amount of the rebate will be based on the amount of GST/HST you are considered to have collected on the self‑supply.

A self‑supply occurs on the latest of the following dates:

• the day the construction or substantial renovation is substantially completed; or
• the first day you give possession or use of the complex or a unit in the complex or addition, under a lease, licence or similar arrangement entered into for the purpose of occupancy of the complex or unit as a place of residence, or you occupy a unit for use as a place of residence (if you are an individual).

The FMV of the complex must be determined at the time the self‑supply occurs. Some of the deadlines for filing an NRRP rebate application are based on the date the self‑supply occurs.

For more information about self‑supplies, see Guide RC4052, GST/HST Information for the Home Construction Industry.

What is a qualifying residential unit?

Each residential unit for which you are claiming an NRRP rebate has to be a qualifying residential unit. For example, if you own a triplex and one of the three units in the complex is a qualifying unit, you can claim an NRRP rebate for only that unit, provided the unit meets all of the other conditions for the NRRP rebate.

Complete the “Qualifying residential unit test” to determine if your unit qualifies.

Qualifying residential unit test
The unit is only considered a qualifying residential unit if you answer yes to all of the below questions.
	Yes	No
Is the unit a residential unit?
Do any one of the following apply? You own or co‑own the unit, or lease or sublet the unit from another person. You have possession of the unit under an agreement of purchase and sale. If the unit is in a residential complex, you lease or sublet the unit from another person.
Is the unit a self‑contained residence?
Do you hold the unit for any one of the following purposes? To make an exempt lease or sublease of the unit for use by an individual as a place of residence (including an exempt lease or sublease of the unit that you make to another person if that person holds the unit to make an exempt sublease of the unit for use by an individual as a place of residence). To make an exempt supply of property or a service that includes giving possession or use of the unit under a lease, licence or similar arrangement entered into for the purpose of the unit’s occupancy by an individual as a place of residence. To make an exempt sale of the unit and an exempt lease of the related land under a single written agreement. To occupy the unit as your primary place of residence where another unit situated in the same complex is a qualifying residential unit that you hold for one of the purposes listed above.
Was the first use of the unit (or is it reasonable to expect that the first use of the unit will be) one of the following? Your or your relation’s primary place of residence for a period of at least one year (or for a shorter period if, after the shorter period, the unit is leased to an individual who will occupy the unit as their primary place of residence). A lessor’s, or their relation’s, primary place of residence for a period of at least one year (or for a shorter period if, after the shorter period, the unit is sold or leased to an individual who will occupy the unit as their primary place of residence). An individual’s primary place of residence and the individual will occupy the unit continuously for a period of at least one year (or for a shorter period if the unit is sold to another person for use as the primary place of residence of that person or a relation to that person, or taken by the person or lessor, or a relation of the person or the lessor, for use as their primary place of residence). Note If the first use of substantially all (90% or more) of the residential units in a multiple unit residential complex that contains ten or more residential units is or can reasonably be expected to be for one of the purposes listed in this question, then all of the residential units in the complex are considered to meet the condition for this question.
If, after the first use, you intend to occupy the unit or to lease it as a place of residence or lodging to an individual who is a relation, shareholder, member, partner, or an individual with whom you are not dealing at arm’s length, will the unit be the primary place of residence of the individual?
Generally, if you answered yes to all of the above questions, this unit is a qualifying residential unit. For information on the other NRRP rebate conditions that must be met, see “Application types”.

 

Fair market value

If you are a builder of a residential complex or an addition to a multiple unit residential complex, or a purchaser of a residential complex, your NRRP rebate is based on the fair market value (FMV) of your qualifying residential unit even if you purchase the unit or complex. The rebate is not based on your purchase price.

Generally, the FMV of a unit is the value of the building, the applicable land, and all other structures (for example, a detached garage or shed) that are reasonably necessary for the use and enjoyment of the unit as a place of residence for individuals. It is the highest price that you can get in the real estate market between unrelated parties and should be comparable to the values of similar housing in the local real estate market. FMV does not include any GST/HST payable on the FMV or provincial land transfer taxes.

The FMV should be determined for each unit separately, except for duplexes. To calculate your NRRP rebate for a duplex, the FMV of the entire duplex (both units together) has to be determined.

For units with a FMV between $350,000 and $450,000, the rebate for some of the GST or federal part of the HST is gradually reduced. No rebate is available for the GST or federal part of the HST if a unit has a FMV of $450,000 or more.

Note
This gradual reduction does not apply to the provincial NRRP rebate. Subject to a maximum amount, a provincial NRRP rebate may be available regardless of the FMV of the unit.

We may ask for documentation to support the FMV of your qualifying residential unit (such as a professional appraisal).

For qualifying residential units that are located in a newly constructed multiple unit residential complex, the percentage of floor space of a qualifying residential unit in comparison to the total floor space for all of the residential units will be multiplied by the FMV of the residential complex to determine the FMV of the unit.

The amount of the NRRP rebate is based on the FMV of the qualifying residential unit at the time the tax is payable for a purchase or at the time that the tax is deemed to be paid for a self‑supply.

If you purchase a qualifying residential unit that is a residential condominium unit where possession of the unit is transferred to you before the complex is registered as a condominium, you have to determine the FMV on the day that is the earliest of the following dates:

• the day that ownership of the unit is transferred to you; and
• the day that is 60 days after the day the complex is registered as a condominium.

Otherwise, if you are the purchaser of a qualifying residential unit, tax becomes payable at the earliest of the following dates:

• the day that ownership is transferred to you; and
• the day that possession is transferred to you under the purchase and sale agreement.

For a self‑supply, see “What is a self‑supply?”.

For a self supply of land, your NRRP rebate is based on the FMV of the land at the time that the self supply occurred. For more information, see GST/HST Memorandum 19.2.3, Residential Real Property – Deemed Supplies.

Is your property situated in Ontario or British Columbia?

In addition to the GST/HST new residential rental property rebate for some of the federal part of the HST, you may be entitled to claim a provincial new residential rental property rebate for some of the provincial part of the HST that was paid for your newly constructed or substantially renovated rental property that is situated in Ontario or British Columbia.

You are entitled to claim a provincial NRRP rebate for some of the provincial part of the HST if:

• you are entitled to claim an NRRP rebate for some of the federal part of the HST; or
• you would have been entitled to claim that rebate if:
  • the FMV of the qualifying residential unit at the time tax became payable on the purchase or self-supply was less than $450,000; or
  • in the case of land, if the FMV of the land or site in the residential trailer park at the time tax became payable on the self-supply was less than $112,500.

The information in “Application types” applies equally to provincial NRRP rebates unless otherwise noted. It explains the eligibility criteria, filing deadlines, and documentation you need to provide, for each application type.

For more information on the HST in Ontario and British Columbia, see the following Information Sheets:

• GST/HST Info Sheet GI-091, Harmonized Sales Tax: Information for Landlords of New Rental Housing;
• GST/HST Info Sheet GI-093, Harmonized Sales Tax: Ontario New Residential Rental Property Rebate; and
• GST/HST Info Sheet GI-094, Harmonized Sales Tax: British Columbia New Residential Rental Property Rebate.

Provincial transitional new housing rebates

You may be entitled to claim a provincial transitional new housing rebate if:

• you paid the HST to purchase a newly constructed or substantially renovated residential complex in Ontario or British Columbia or you paid the HST on a self‑supply of a residential complex or an addition; and
• at least 10% of the construction or substantial renovation was completed before July 1, 2010.

Note
The provincial transitional new housing rebate is not available for a mobile home, including a modular home, floating home, or the lease of the land part of a residential complex. For a purchase of a single unit residential complex, the purchaser must be an individual. For a condominium unit or complex, the provincial transitional new housing rebate can only be claimed by the builder.

For more information and to apply for the transitional new housing rebate, see the applicable one of the following forms:

• Form RC7000‑ON, Ontario Retail Sales Tax (RST) Transitional New Housing Rebate;
• Form RC7001‑ON, Ontario Retail Sales Tax (RST) Transitional New Housing Rebate - Residential Condominiums;
• Form RC7002‑ON, Ontario Retail Sales Tax (RST) Transitional New Housing Rebate - Apartment Buildings;
• Form RC7000‑BC, British Columbia Provincial Sales Tax (PST) Transitional New Housing Rebate;
• Form RC7001‑BC, British Columbia Provincial Sales Tax (PST) Transitional New Housing Rebate - Residential Condominiums; or
• Form RC7002‑BC, British Columbia Provincial Sales Tax (PST) Transitional New Housing Rebate - Apartment Buildings.

For more information about the transitional new housing rebate, see GST/HST Info Sheet GI‑096, Harmonized Sales Tax: Provincial Transitional New Housing Rebates for Housing in Ontario and British Columbia.

Application types

You will complete your new residential rental property (NRRP) rebate application based on one of the following application types (only one application type will apply to you):

• Type 6: Lease of building and land;
• Type 7: Sale of building and lease of land;
• Type 8: Co-operative housing corporation (co-op) units; or
• Type 9A or Type 9B: Lease of land.

Application Type 6: Lease of building and land

A new residential rental property (NRRP) rebate is available using application Type 6 if you are a purchaser or a builder of a residential complex that is, or contains at least one qualifying residential unit (see “What is a qualifying residential unit?”) and you meet the conditions that apply depending on whether you are a purchaser/landlord or a builder/landlord.

Purchaser/landlord

You can claim an NRRP rebate for a residential complex or a residential unit(s) in the complex under application Type 6 if you are a purchaser/landlord and you meet all of the following conditions:

• you are not a co-op;
• your purchase of the residential complex, or an interest in it, was taxable and you are not a builder of the complex;
• when the tax became payable on your purchase, the residential complex was a qualifying residential unit or the complex contained one or more qualifying residential units;
• you paid all of the tax payable on the purchase, and you are not entitled to claim an input tax credit (ITC) for the GST/HST you paid on your purchase; and
• in the case of an NRRP rebate for some of the GST or federal part of the HST, the fair market value (FMV) of the qualifying residential unit at the time tax became payable on the purchase was less than $450,000.

You can only claim an NRRP rebate for qualifying residential units. This means that if the residential complex contains other residential units that are not qualifying residential units, an NRRP rebate is not available for those other units. In this case, you have to allocate the GST/HST you paid between both qualifying residential units and other residential units. The allocation must be fair and reasonable.

If any units in the building are for commercial use, those units do not form part of the residential complex and an NRRP rebate is not available for those units. However, if you are a GST/HST registrant you may be entitled to claim an input tax credit for the GST/HST that was paid or is payable for the part of the building that is for commercial use. For more information, see Guide RC4022, General Information for GST/HST Registrants.

Note
If you purchased previously occupied residential property and you substantially renovated it or if you purchased commercial real property and converted it into a residential complex, you may be entitled to claim a NRRP rebate as a builder (see “Builder/landlord”).

Builder/landlord

You can claim an NRRP rebate for a residential complex or a residential unit(s) in a multiple unit residential complex or an addition to a multiple unit residential complex under application Type 6 if you are a builder/landlord and you meet all of the following conditions:

• you are not a co-op;
• you are a builder of the residential complex or addition (see “Are you a builder for GST/HST purposes?”);
• you are considered to have paid and collected GST/HST on the FMV of the entire complex or addition (that is, you are considered to have made a taxable self-supply of the complex or addition), and you are not entitled to claim an input tax credit (ITC) for this tax (see “What is a self-supply”);
• when the tax became payable on your self-supply of the complex or addition, the residential complex or addition was a qualifying residential unit or the complex or addition contained one or more qualifying residential units;
• in the case of an NRRP rebate for some of the GST or federal part of the HST, the FMV of the qualifying residential unit at the time the tax became payable on the self-supply was less than $450,000; and
• you reported the tax on your GST/HST return for the reporting period during which the self-supply occurred and remitted the net tax, if any, for that period.

Filing deadlines for application Type 6

The deadlines are as follows:

• If you are a purchaser/landlord, you have to file the NRRP rebate application within two years after the end of the month in which tax first becomes payable on your purchase.
• If you are a builder/landlord, you have to file the rebate application within two years after the end of the month in which the self-supply occurred.

Required documents for application Type 6

If you are a purchaser/landlord, you have to send your signed purchase and sale agreement (excluding attachments), Statement of Adjustments for the purchase of the property, and the rental or lease agreement with your rebate application.

If you are a builder/landlord, you have to send the rental or lease agreement with your rebate application.

Application Type 7: Sale of building and lease of land

An NRRP rebate is available using application Type 7 for a residential complex or a residential unit(s) in a multiple unit residential complex or an addition to such a multiple unit complex that is, or contains at least one qualifying residential unit (see “What is a qualifying residential unit?”) and all of the following conditions are met:

• you are not a co-op;
• you are a builder of the residential complex, or addition (see “Are you a builder for GST/HST purposes?”);
• you make an exempt sale of the building or part of it and you make an exempt lease of, or an exempt assignment of a leasehold interest in, the land on which the building is situated. The lease of land must provide for continuous possession or use of the land for a period of at least 20 years or must contain an option to purchase the land;
• you are considered to have paid and collected tax on the FMV of the entire complex, or addition (that is, you are considered to have made a taxable self‑supply), and you are not entitled to claim an ITC for this tax (see “What is a self‑supply”);
• if you make an exempt sale of the building part of a single unit residential complex or a residential condominium unit, the purchaser is entitled to claim the GST/HST new housing rebate (see Guide RC4028, GST/HST New Housing Rebate);
• when the tax became payable on your self-supply of a multiple unit residential complex or an addition to one, the complex or addition contained one or more qualifying residential units;
• in the case of an NRRP rebate for some of the GST or federal part of the HST, the FMV of the qualifying residential unit at the time tax became payable on the self-supply was less than $450,000; and
• you reported the tax on your GST/HST return for the reporting period during which the self-supply occurred and remitted the net tax, if any, for that period.

Note
When you sell the building portion of a single unit residential complex or a residential condominium unit and lease the land, the purchaser must be entitled to claim a GST/HST new housing rebate (see Guide RC4028). You have to deduct the purchaser’s new housing rebate amount when calculating your NRRP rebate. You calculate and deduct the purchaser’s rebate on Form GST524. If the purchaser is not entitled to claim the GST/HST new housing rebate, you are not entitled to claim the NRRP rebate.

Filing deadline for application Type 7

You have to file the rebate application within two years after the end of the month in which the self-supply occurred.

Required documents for application Type 7

You have to send the signed agreement to purchase the building and lease the land (excluding attachments) and the Statement of Adjustments with your rebate application.

Application Type 8: Co-operative housing corporation (co-op) units

An NRRP rebate is available using application Type 8 if you are a purchaser or a builder of a co‑op unit that is a qualifying residential unit (see “What is a qualifying residential unit?”) and you meet the conditions explained below. The conditions depend on whether you are a co‑op purchaser/landlord or a co‑op builder/landlord.

Co-op purchaser/landlord

You can claim an NRRP rebate for a co‑op unit under application Type 8 if you are a co‑op purchaser/landlord and you meet all of the following conditions:

• you are a co-op;
• your purchase of the residential complex or an interest in it, was taxable, and you are not a builder of the complex;
• when the tax became payable on your purchase, the residential complex was a qualifying residential unit or the complex contained one or more qualifying residential units;
• in the case of an NRRP rebate for some of the GST or federal part of the HST, the FMV of the qualifying residential unit at the time the tax became payable on the purchase was less than $450,000;
• you paid all of the tax payable on the purchase of the complex or interest, and you are not entitled to claim an ITC for the GST/HST you paid on your purchase; and
• you supply the qualifying residential unit, under an exempt long‑term residential lease after the unit’s construction or last substantial renovation.

If you are a co‑op that is claiming a rebate for more than one qualifying residential unit in a multiple unit residential complex, you have to file a separate rebate application for each qualifying residential unit

Co-op builder/landlord

You can claim an NRRP rebate for a co‑op unit under application Type 8 if you are a co‑op builder/landlord and you meet all of the following conditions:

• you are a co-op;
• you are a builder of the residential complex, or an addition to a multiple unit residential complex that is or includes the co‑op unit;
• you supply the qualifying residential unit, under an exempt long‑term residential lease after the unit’s construction or last substantial renovation;
• you are considered to have paid and collected tax on the FMV of the entire complex or addition (you are considered to have made a taxable self‑supply), and you are not entitled to claim an ITC for this tax (see “What is a self‑supply”);
• when the tax became payable on your self‑supply of the complex or addition, the residential complex or addition was a qualifying residential unit or the complex or addition contained one or more qualifying residential units;
• in the case of an NRRP rebate for some of the GST or federal part of the HST, the FMV of the qualifying residential unit at the time the tax became payable on the self‑supply was less than $450,000; and
• you reported the tax on your GST/HST return for the reporting period during which the self-supply occurred and remitted the net tax, if any, for that period.

If you are a co‑op that is claiming a rebate for more than one qualifying residential unit in a multiple unit residential complex or addition, you have to file a separate rebate application for each qualifying residential unit.

Note
If you sell a share that gives the purchaser a right to occupy the qualifying residential unit, the purchaser may be entitled to claim a GST/HST new housing rebate (see Guide RC4028, GST/HST New Housing Rebate). In that situation, you will have to deduct the purchaser's new housing rebate amount from your NRRP rebate. You calculate and deduct the purchaser's rebate on Form GST524. For a co‑op unit in Ontario or British Columbia, if the purchaser is entitled to claim a provincial new housing rebate, you have to deduct the amount of that rebate when calculating your provincial NRRP rebate amount.

Filing deadlines for application Type 8

If you are a co-op purchaser/landlord, you have to file the rebate application within two years after the end of the month in which tax first becomes payable on your purchase.

If you are a co-op builder/landlord, you have to file the rebate application within two years after the end of the month in which the self-supply occurred.

You cannot claim an NRRP rebate for a particular qualifying residential unit that is a co‑op unit until you supply that unit under an exempt long‑term residential lease. As a result, you cannot claim an NRRP rebate for any qualifying units where the exempt long‑term lease is entered into after the two year time limit described above expires.

Required documents for application Type 8

If you are a co‑op purchaser/landlord, you have to send the signed purchase and sale agreement (excluding attachments), your Statement of Adjustments for the purchase of the property, and the rental or lease agreement with your NRRP rebate application.

If you are a co‑op builder/landlord, you have to send the rental or lease agreement with your NRRP rebate application.

Application Type 9A or Type 9B: Lease of land

You can claim an NRRP rebate under Type 9 if you meet all of the following conditions:

• you make an exempt lease of land for a period of continuous possession or use of at least one month:
  • if the land is not a site in a residential trailer park, to the owner, lessee, or occupant of a residential unit that is or is to be affixed to the land for its use and enjoyment as a place of residence for individuals; or
  • if the land is a site in a residential trailer park, to the owner, lessee, or occupant of a mobile home, travel trailer, motor home, or similar vehicle or trailer situated or to be situated on the site for its use and enjoyment as a place of residence for individuals;
• you are considered to have paid and collected tax because:
  • you are a GST/HST registrant (other than an individual or a public service body that is not a financial institution) who last acquired the land for use as capital property in your commercial activities, but you start using it exclusively (90% or more) for other purposes (for example, in exempt activities). In this case, the tax deemed paid is equal to the basic tax content of the land;
  • you are a public service body that is not a financial institution and you are a GST/HST registrant who last acquired the land for use as capital property primarily (more than 50%) in your commercial activities, but you start using it primarily for other purposes (for example, in exempt activities). In this case, the tax deemed paid is equal to the basic tax content of the land;
  • you are an individual who is also a GST/HST registrant, who purchased the land for use as capital property in your commercial activities, but not primarily (more than 50%) for personal use. You start using it exclusively (90% or more) for other purposes (for example, in exempt activities) or you start using it primarily for your personal use or for the personal use of a related individual. In this case, the tax deemed paid is equal to the basic tax content of the land;
  • you make a certain exempt lease of land (other than a site in a residential trailer park) to a person for the first time without changing the use of the property and, are deemed to have paid tax on the FMV of the land; or
  • you make a certain exempt lease of a site in a residential trailer park. In addition, it is the first time that you lease such a site in the park or in an addition to the park, to the owner, lessee, or occupant of a mobile home, travel trailer, motor home, or similar vehicle or trailer, that is or is to be situated on the site and are deemed to have paid tax on the FMV of the park or the addition to the park;
• in the case of an NRRP rebate for some of the GST or federal part of the HST, the FMV of the land or site in the residential trailer park at the time tax became payable on the self‑supply was less than $112,500;
• you are not entitled to claim an ITC for the GST/HST deemed paid on the self‑supply; and
• you reported the tax deemed collected on the self‑supply on your GST/HST return for the reporting period during which the self‑supply occurred and remitted the net tax, if any, for that period.

Note
A self‑supply can occur if you give possession of the land under an exempt lease for the residential use of the land. In this case, you are deemed to have paid the GST/HST on the FMV of the land at the time of self‑supply. A self‑supply can also incur if there is a change in use of the land as described above. In this case, you are deemed to have paid the GST/HST equal to the basic tax content of the land at the time of the change in use.

For more information on the self‑supply rules that apply to leases of land for residential use, see GST/HST Memoranda Series, Chapter 19.2.3, Residential Real Property — Deemed Supplies.

Filing deadline for application Type 9

You have to file the rebate application within two years after the end of the month in which the self-supply occurred.

Required documents for application Type 9

You have to send the rental or lease agreement with your NRRP rebate application.

Applying for the rebate

The information in this section will help you determine what forms you need to complete for the application type that applies to you (“Application types”).

All eligible claimants, regardless of the application type, must complete Sections A, B, C, and F of Form GST524, GST/HST New Residential Rental Property Rebate Application. Depending on your situation, you may have to complete Form GST525, Supplement to the New Residential Rental Property Rebate Application – Co-op and Multiple Units or one of the provincial rebate schedules along with Form GST524.

Forms to complete

To claim an new residential rental property (NRRP) rebate for a single unit residential complex, which includes a duplex, a residential condominium unit, or an addition of only one residential unit to a multiple unit residential complex (unless you are a co‑operative housing corporation), complete sections A, B, C, D and F of Form GST524. Do not complete Section E.

To claim an NRRP rebate for a lease of land, complete sections A, B, C, E and F of Form GST524. Do not complete any part of Section D.

Note
If you are claiming an NRRP rebate for a residential condominium unit, complete Form GST524 only, even if the unit is located in a condominium complex. You have to complete a separate NRRP rebate application for each condominium unit.

To claim an NRRP rebate for a co‑operative housing corporation (co‑op) unit, complete sections A, B, C, and F of Form GST524, and Sections A and C of Form GST525, Supplement to the New Residential Rental Property Rebate Application – Co‑op and Multiple Units. Do not complete Section B on Form GST525. You have to complete sections A and C of Form GST525 for each qualifying residential unit in the co‑op.

Note
If you are a co‑op that is claiming a rebate for more than one qualifying residential unit in a multiple unit residential complex or addition, you have to file a separate rebate application for each qualifying residential unit. You cannot include all of the units in the co‑op on one NRRP rebate application.

To claim an NRRP rebate for multiple units in a residential complex, or an addition to such a complex where the addition contains more than one unit, complete sections A, B, C, and F of Form GST524 and Section B of Form GST525. Do not complete Sections A and C on Form GST525.

Note
If you had to complete Form GST525 to claim your NRRP rebate, do not complete Section D or E on Form GST524.

For more information, see “Completing Form GST524” and “Completing Form GST525”.

Documents you have to send us

You have to send appropriate documents with your application. Information on these documents is provided for each application type in the previous section (see “Application types”).

The processing of your rebate claim may be delayed or your rebate denied if the application form is not completed in full, the rebate calculation is incorrect, or if the documents requested are not submitted with your NRRP application. We accept photocopies of required documents.

Documents you have to keep

Keep a copy of the completed forms. Also, keep all of your records, including original receipts, invoices, written contracts, agreements, and other documents you used to complete the forms for six years after the end of the year to which they relate. All claims are subject to audit and, if requested, you have to make your records available to us.

Completing Form GST524

All eligible claimants must complete Sections A, B, C, and F of Form GST524, GST/HST New Residential Rental Property Rebate Application.

To find out whether Section D or E of the form applies to you (only one may apply to you) and whether you also have to complete Form GST525, Supplement to the New Residential Rental Property Rebate Application – Co-op and Multiple Units, see “Applying for the rebate”.

Section A — Claimant information

In the box, “Claimant’s legal name”, enter the legal name of the owner of the housing. If you are an individual, enter your name. If you are a business or other organization, enter the full legal name. If more than one person owns the housing, enter one name as the claimant on the first line, and then the legal name(s) of the other owner(s) on the second line. The rebate cheque will be issued in the name of all of the owners of the housing.

Section B — Property information

Enter the date tax becomes payable on the purchase, or is deemed to be paid for the self-supply of the property, (the date the self-supply occurs). The information below will help you to determine this date.

Purchaser

I you are a purchaser of a taxable residential condominium unit where possession of the unit is transferred to you before the complex is registered as a condominium, tax becomes payable at the earliest of the following dates:

• the day that ownership of the unit is transferred to you; and
• the day that is 60 days after the day the complex is registered as a condominium.

In any other case, where you are the purchaser of a taxable residential complex, tax becomes payable at the earliest of the following dates:

• the day that ownership is transferred to you; and
• the day that possession is transferred to you under the purchase and sale agreement.

Builder

If you are a builder who constructed or substantially renovated a residential complex, made an addition to a multiple unit residential complex, or converted real property into a residential complex the self-supply occurs at the latest of the following dates:

• the day the construction or substantial renovation is substantially completed; and
• the first day you give possession or use of the complex or a unit in the complex or addition, under a lease, licence or similar arrangement entered into for the purpose of occupancy of the complex or unit as a place of residence, or you occupy a unit for use as a place of residence (if you are an individual).

Land

Generally, if you made an exempt lease of land for residential use, the self-supply occurs on the day that the first lease begins or on the day that a change in-use occurs. For more information on the self-supply rules that apply to land, see "What is a self-supply?" and GST/HST Memoranda 19.2.3, Residential Real Property - Deemed Supplies.

Section C — Housing and application type information

Tick the box that applies to your situation (type of claimant, type of construction, type of housing, and type of application). Tick only one box in each category. For more information, see "Application types".

Section D - Rebate calculation for Type 6 and Type 7

Complete Section D only if you are claiming a new residential rental property (NRRP) rebate under application Type 6 or Type 7 for:

• a single unit residential complex;
• a residential condominium unit;
• a duplex; or
• an addition of one unit to a multiple unit residential complex.

For more information on whether Section D applies to you, see “Applying for the rebate”.

Part I – Rebate calculation for Type 6 and Type 7

To claim a Type 6 or Type 7 rebate for a single unit residential complex, a residential condominium unit, a duplex, or an addition of only one residential unit to a multiple unit residential complex, first complete Part I of Section D. Then, for a Type 6 rebate, go to Part II and for a Type 7 rebate, go to Part III.

Note
If your residential rental property is situated in Ontario or British Columbia, you may be able to claim a provincial NRRP rebate for some of the provincial part of the HST. For more information, see “Completing the provincial rebate schedules”.

Line A

If you paid GST on the purchase or self‑supply of the residential complex or addition, enter the total GST paid on line A.

If you paid HST on the purchase or self‑supply of the residential complex or addition, the NRRP rebate is available for some of the federal part of the HST that you paid. Calculate the federal part of the HST paid on the purchase or self‑supply by completing the applicable calculation for the rate of tax you paid. Enter the result on line A.

Line B

Enter on line B the FMV (see “Fair market value”) of the residential complex or addition (building and land) on the date that the tax became payable (the date you indicated in Section B on page 1). Do not include any GST/HST that is payable on the FMV.

Line C

Complete line C only if you are claiming a Type 6 rebate and you made a taxable purchase of the residential complex. Enter the purchase price of the complex, not including the GST/HST payable on the purchase.

Line D

Multiply the amount on line A by 36%.

If the result is less than the corresponding maximum amount indicated on the form, enter the result of your calculation on line D.

If the result is greater than the corresponding maximum amount, enter the maximum amount indicated on the form on line D.

Line E

If the amount on line B is $350,000 or less, enter the amount from line D on line E. If the amount on line B is more than $350,000, complete the calculation as indicated and enter the result on line E.

If the result is negative, enter “0”. This means that a rebate amount is not payable for the GST or the federal part of the HST since the FMV exceeds the maximum threshold for the rebate.

To complete your calculation for:

• a Type 6 rebate, go to Part II; or
• a Type 7 rebate, go to Part III.

Part II – Calculation for Type 6 only

Line F

Enter the amount from line E in Part I. This is your NRRP rebate amount for some of the GST or federal part of the HST.

Line G

If your residential rental property is situated in Ontario or British Columbia, enter the provincial rebate amount that you calculated on the applicable provincial rebate schedule on line G. If you are not entitled to claim the NRRP rebate for some of the federal part of the HST only because the FMV of the qualifying residential unit exceeds $450,000, you are still entitled to claim the provincial NRRP rebate.

Enter “0” if the residential rental property is not situated in Ontario or British Columbia.

Line H

Add the amounts you entered on line F and line G and enter the result on line H. This is your total NRRP rebate.

You are now ready to certify your application. Go to Section F on page 4 of the form. For more information, see “Section F – Certification”.

Part III – Calculation for Type 7 only

Line I

Enter on line I the total amount of the sale price for the structure (building only) paid by the purchaser.

Below line I, enter the date the purchase agreement was signed by both you and the purchaser.

Line J

Enter on line J the result of the calculation up to the maximum that applies, as indicated below. Complete the calculation at line J using the rebate rate that applies to you.

Rebate rate

Only one rebate rate can apply.

Use 1.57% if the house is located in Nova Scotia, the agreement of purchase and sale was entered into on or after July 1, 2010, and possession of the house was first transferred to the purchaser on or after that date.

If your rebate rate is 1.57%, the maximum you can enter on line J is $6,300.

Use 1.60% if the house is located in New Brunswick or Newfoundland and Labrador, the agreement of purchase and sale was entered into on or after July 1, 2010, and possession of the house was first transferred to the purchaser on or after that date.

Also use 1.60% if the house is located in Ontario, possession of the house was first transferred to the purchaser on or after July 1, 2010, and you had to account for the HST at 13% on the self‑supply of the house and the land.

If your rebate rate is 1.60%, the maximum you can enter on line J is $6,300.

Use 1.61% if the house is located in British Columbia, possession of the house was first transferred to the purchaser on or after July 1, 2010, and you had to account for the HST at 12% on the self‑supply of the house and the land.

If your rebate rate is 1.61%, the maximum you can enter on line J is $6,300.

Use 1.71% if one of the following situations applies to you:

• Situation A: You had to account for the GST at 5% on the self‑supply of the house and land or, where the house is located in Nova Scotia, New Brunswick or Newfoundland and Labrador, you had to account for the HST at 13% on the self‑supply of the house and land, and:
  • possession of the house was first transferred to the purchaser before July 1, 2010; or
  • the agreement of purchase and sale was entered into before April 7, 2010.
• Situation B: The house is located in New Brunswick or Newfoundland and Labrador, possession of the house was first transferred to the purchaser after June 30, 2010, and the agreement of purchase and sale was entered into after April 6, 2010, and before July 1, 2010.
• Situation C: The house is located in Nova Scotia, possession of the house was first transferred to the purchaser after June 30, 2010, and the agreement of purchase and sale was entered into after April 6, 2010, and before July 1, 2010.

If your rebate rate is 1.71%, the maximum you can enter on line J is $6,300.

Use 2.04% if you had to account for GST at 6% or HST at 14% on the self‑supply of the house and land.

If your rebate rate is 2.04%, the maximum you can enter on line J is $7,560.

Use 2.34% if you had to account for GST at 7% or HST at 15% on the self‑supply of the house and land, under an agreement entered into before May 3, 2006.

If your rebate rate is 2.34%, the maximum you can enter on line J is $8,750.

Which rate of tax do I account for on a self‑supply?
Generally, you have to account for tax on a self‑supply at the rate of tax that is in effect on the day of the self‑supply. However, there are different rules if you had to account for tax on a self‑supply under an agreement you entered into:

• before October 31, 2007, if possession of the house transferred after December 31, 2007; or
• before May 3, 2006, if possession of the house transferred after June 30, 2006.

For more information on these rules, call 1‑800‑959‑8287.

Line K

Complete the calculation that corresponds to the rebate rate you used to complete line J. Only one calculation will apply to your situation.

If the amount from line B in Part I is equal to or less than the threshold amount indicated on the form, enter the amount from line J on line K. If the amount on line B in Part I is more than the threshold amount indicated on the form, complete the calculation as indicated and enter the result on line K.

If the result is negative or equal to “0”, enter “0”. This means that a new housing rebate amount is not payable to the purchaser. In this case, you are not entitled to claim an NRRP rebate for some of the GST or federal part of the HST.

Line L

Subtract the amount on line K from the amount on line E in Part I. Enter the result on line L. This is your NRRP rebate amount for some of the GST or the federal part of the HST.

If the amount on line K is “0,” you are not entitled to claim an NRRP rebate for some of the GST or the federal part of the HST.

Line M

If your residential rental property is situated in Ontario or British Columbia, enter the provincial rebate amount that you calculated on the applicable provincial rebate schedule on line M. If you are not entitled to claim the NRRP rebate for some of the federal part of the HST only because the FMV of the qualifying residential unit exceeds $450,000, you are still entitled to claim the provincial NRRP rebate.

Enter “0” if the residential rental property is not situated in Ontario or British Columbia.

Line N

Add the amounts you entered on line L and line M and enter the result on line N. This is your total NRRP rebate.

You are now ready to certify your application. Go to Section F on page 4 of the form. For more information, see “Section F – Certification”.

Section E — Rebate calculation for Type 9A and Type 9B

Complete Section E if you are claiming an NRRP rebate for land you lease for residential use.

Note
If your property is situated in Ontario or British Columbia, you may be able to claim a provincial rebate for some of the provincial part of the HST. For more information, see “Completing the provincial rebate schedules”.

Line O

If you paid GST on a self supply of the land, enter on line O the total GST you are deemed to have paid.

If you paid the HST on a self‑supply of the land, the NRRP rebate is available for some of the federal part of the HST that you paid. Calculate the federal part of the HST you are deemed to have paid on the self‑supply by completing the applicable calculation for the rate of tax you paid. Enter the result on line O.

If the self‑supply occurred because you gave possession of the land under an exempt lease for the residential use of the land, you are deemed to have paid the GST/HST on the FMV of the land at the time of the self‑supply. If the self‑supply occurred because you changed the use of the land, you are deemed to have paid the GST/HST equal to the basic tax content of the land at the time of the change in use (the self‑supply).

For more information, see “Application Type 9A or Type 9B: Lease of land” and GST/HST Memoranda 19.2.3, Residential Real Property – Deemed Supplies.

Line P

Enter on line P the FMV of the land on the date the self supply occurred (the date you indicated in Section B on page 1). For more information, see “Fair market value”.

For more information on a self supply of land that is leased for residential purposes (including a self supply of land that is a residential trailer park), see GST/HST Memoranda 19.2.3, Residential Real Property – Deemed Supplies.

Line Q

Multiply the amount from line O by 36%. Enter the result on line Q.

Note
If the lease is for land that is not a site in a residential trailer park, go to line T. If the lease is for land in a residential trailer park, continue to line R.

Line R

Enter on line R the total number of sites in the residential trailer park or in the addition to it at the time of the self supply.

Line S

Divide the amount on line P by the number of sites indicated on line R and enter the result on line S.

Line T

If the lease of land is not a site in a residential trailer park, complete “Calculation 1.” If the lease of land is a site in a residential trailer park, complete “Calculation 2.”

Calculation 1
If the amount on line P is $87,500 or less, enter the amount from line Q onto line T. If the amount on line P is more than $87,500, complete the calculation as indicated and enter the result on line T.

Calculation 2
If the amount on line S is $87,500 or less, enter the amount from line Q on line T. If the amount on line S is more than $87,500, complete the calculation as indicated and enter the result on line T.

If the result is negative, enter “0”. This means that a rebate amount is not payable since the FMV exceeds the maximum threshold for the NRRP rebate for some of the GST or the federal part of the HST.

This is your NRRP rebate amount for some of the GST or federal part of the HST.

Line U

If your residential rental property is situated in Ontario or British Columbia, enter the provincial rebate amount that you calculated on the applicable provincial rebate schedule on line U. If you are not entitled to claim the NRRP rebate for some of the federal part of the HST only because the FMV of the land exceeds $87,500, you are still entitled to claim the provincial NRRP rebate.

Enter “0” if the residential rental property is not situated in Ontario or British Columbia.

Line V

Add the amounts you entered on line T and line U and enter the result on line V. This is your total NRRP rebate.

You are now ready to certify your application. Go to Section F on page 4 of the form. For more information, see “Section F – Certification”.

Section F — Certification

You, or an authorized person, have to sign and date Form GST524.

Note
You can authorize a person (including an employee) to sign for you by using My Business Account, or by sending us Form RC59, Business Consent Form, or a letter of authorization naming the person as your authorized representative. If the person has a power of attorney, send us a copy of the power of attorney document. For more information, go to My Business Account.

If you are filing an NRRP rebate for a co‑op unit or for one or more units in a multiple unit residential complex (other than a duplex) or in an addition to such a complex, you also have to complete Form GST525, Supplement to the New Residential Rental Property Rebate Application – Co‑op and Multiple Units.

If you are claiming a provincial NRRP rebate for your residential rental property that is situated in Ontario or British Columbia, you also have to complete the appropriate provincial rebate schedule. For more information, see “Completing the provincial rebate schedules”.

You are now ready to file your NRRP rebate application. See "Filing your NRRP rebate application".

Completing Form GST525

You have to complete Form GST525, Supplement to the New Residential Rental Property Rebate Application – Co-op and Multiple Units, if you are claiming a rebate for:

• one or more qualifying residential units in a multiple unit residential complex;
• one or more qualifying residential units in an addition to a multiple unit residential complex where the addition contains more than one unit; or
• a co‑op unit that is qualifying residential unit and you are a co‑operative housing corporation.

You also have to complete sections A, B, C, and F of Form GST524, GST/HST New Residential Rental Property Rebate Application. Send us both forms together.

Note
For purposes of the new residential rental property (NRRP) rebate, a multiple unit residential complex includes, for example, an apartment building or a triplex. However, it does not include a duplex or a condominium complex. For a duplex or residential condominium units in a condominium complex, do not complete Form GST525. Use only Form GST524.

For purposes of this form, reference to a residential complex or to a multiple unit residential complex includes an addition to a multiple unit residential complex, as long as the addition contains more than one unit.

This part of the guide gives you step‑by‑step instructions to help you complete Form GST525. For instructions on how to complete Form GST524, see "Completing Form GST524".

Section A — Claimant information

It is important that you enter your legal name and Business Number, if applicable, in case this form becomes separated from your GST524 rebate application.

Section B — Rebate calculation for Type 6 and Type 7

Part I – Rebate calculation for units in a multiple unit residential complex or addition

For these types, complete one rebate application (Form GST524) and one supplement (Form GST525) to include all of the qualifying residential units in a multiple unit residential complex.

Round off your calculations to two decimal places.

Purchaser

If you purchased a property that contains a residential part and a non-residential part (for example, residential apartments and retail stores), you have to allocate the tax paid and the purchase price between the residential part and the non-residential part of the property. The allocation must be fair and reasonable. You can claim the NRRP rebate on the residential part only. You also have to establish the fair market value (FMV) of the residential part only.

Example
On February 1, 2010, Rani purchased a four-story building in Manitoba for $500,000 and paid $25,000 GST on the purchase. The FMV of the property at that time was $500,000. The main floor contains a retail store. Rani leases the apartments on the three upper floors for long-term residential purposes. If Rani determines that 75% of the building relates to the residential part, she will enter 75% of the GST paid ($18,750) on line C in Part I of Section B. She will need to establish the FMV of the residential part (building and land) and enter that amount on line D in Part I of Section B.

Builder

If you constructed a building that contains a residential part and a non-residential part, you should already have allocated the amounts between the residential part and the non-residential part when you calculated the tax deemed paid on the self-supply, since self-supply is required only on the residential part of the property.

Notes
The amounts you enter in this part must only relate to the residential part of the property.

If your residential rental property is situated in Ontario or British Columbia, you may be able to claim a provincial NRRP rebate for some of the provincial part of the HST. For more information, see “Completing the provincial rebate schedules”.

Line A

If you paid GST on the purchase or self‑supply of the residential complex or addition, enter the total GST paid on line A.

If you paid HST on the purchase or self‑supply of the residential complex or addition, the NRRP rebate is available for some of the federal part of the HST that you paid. Calculate the federal part of the HST paid on the purchase or self‑supply by completing the applicable calculation for the rate of tax you paid. Enter the result on line A.

Line B

Enter on line B the FMV (see “Fair market value”) of the residential complex or addition (building and land) on the date you indicated that the tax became payable in Section B on page 1 of Form GST524. Do not include any GST/HST that is payable on the FMV.

Line C

Complete line C only if you are claiming a Type 6 rebate and you made a taxable purchase of the residential complex. Enter the purchase price of the complex, not including the GST/HST payable on the purchase.

Line D

Multiply the amount from line A by 36%. Enter the result on line D.

Line E

Enter on line E the total square metres of floor space for all of the residential units in the complex or addition (including any residential units that are not qualifying residential units). Do not include the square metres for common areas.

If all of the residential units of the complex are qualifying residential units, then the number of square metres you indicate on line E must equal the total number of square metres of floor space of all the units in column 2 in the chart in Part II.

Line F

Enter the amount that corresponds to the rate of tax that you paid on the purchase or self‑supply of the residential complex or addition. This amount will be the maximum rebate amount per unit for your column 6 calculations in the chart in Part II.

Before completing the remaining lines in Part I, you will need to complete Part II and Part III on page 2.

Line G

Enter the amount from line G in Part III on page 2.

Line H

Enter the amount from line H in Part III on page 2. This is your NRRP rebate amount for some of the GST or federal part of the HST.

Line I

If your residential rental property is situated in Ontario or British Columbia, enter the provincial rebate amount that you calculated on the applicable provincial rebate schedule on line I. If you are not entitled to claim the NRRP rebate for some of the federal part of the HST only because the FMV of the qualifying residential unit exceeds the maximum threshold amount, you are still entitled to claim the provincial NRRP rebate.

Enter “0” if the residential rental property is not situated in Ontario or British Columbia.

Line J

Add the amounts you entered on line H and line I and enter the result on line J. This is your total NRRP rebate.

You are now ready to certify your application. Go to Section F on page 4 of Form GST524. For more information, see “Section F – Certification”.

Part II – Rebate calculation chart

Enter the amounts from lines B, D, E, and F of Part I in the area above the chart. Complete one row of the chart for each unit. If you need more space, photocopy the chart or use another one.

If you use more than one chart, number the pages and attach them together. Send them with your rebate application (Form GST524).

Column 1

Enter in column 1 the unit number of the qualifying residential unit for which you are claiming a rebate. Only qualifying residential units (see “What is a qualifying residential unit?”) are eligible for the rebate. Complete one row of the chart for each unit.

Column 2

Enter in column 2 the square metres of floor space of the unit.

Column 3

Calculate the percentage of floor space of each qualifying residential unit. To do this, divide the number of square metres of floor space of the unit in column 2 by the total square metres of floor space of all of the residential units on line E. Multiply the result by 100 to get a percentage. Enter this percentage in column 3.

Column 4

Calculate the unit FMV of the qualifying residential unit. To do this, multiply the amount from line B by the percentage of floor space of the unit in column 3. Enter the result in column 4.

Column 5

Multiply the amount from line D by the percentage of floor space of the unit in column 3. Enter the result in column 5.

Column 6

To determine the maximum rebate amount, enter the amount in column 5 or the amount from line F, whichever is less, for each qualifying residential unit.

Complete column 7 only if the amount in column 5 exceeds the maximum rebate amount in column 6. Otherwise, enter the amount from column 6 in column 8.

Column 7

Subtract from $450,000 the amount from column 4 and divide the result by 100,000. Enter this result in column 7.

If the result is negative, enter “0”. This means that an NRRP rebate amount for some of the GST or federal part of the HST is not payable since the FMV exceeds the maximum threshold for this rebate.

Column 8

Calculate the total NRRP rebate for some of the GST or federal part of the HST for the qualifying residential unit. If you did not have to complete column 7, enter the amount from column 6. If you had to complete column 7 because the amount in column 5 exceeded the amount from line F, multiply the amount in column 6 by the amount in column 7. Enter the result in column 8.

Part III – Rebate totals for application Type 6 and Type 7

Line G

Add up the total of all units you entered in Column 1 of the chart in Part II and enter the total on line G.

Line H

Enter on line H the total of all amounts you calculated in column 8 of the chart in Part II. If you needed extra space and used more than one copy of the chart, total all of the amounts in column 8 from all pages and enter the total NRRP rebate amount for some of the GST or federal part of the HST for all of the qualifying residential units on line H.

You are now ready to complete lines G to J in Part I on page 1.

Section C – Rebate calculation for Type 8 – Unit in a co-op

For a co‑op, complete one rebate application (Form GST524) and one supplement (Form GST525) for each co‑op unit in the complex that is a qualifying residential unit.

Note
If the co‑op is situated in Ontario or British Columbia, you may be able to claim a provincial NRRP rebate for some of the provincial part of the HST. For more information, see “Completing the provincial rebate schedules”.

Line K

If you paid GST on the purchase or self‑supply of the residential complex or addition, enter the total GST paid on line K.

If you paid HST on the purchase or self‑supply of the residential complex or addition, the NRRP rebate is available for some of the federal part of the HST that you paid. Calculate the federal part of the HST paid on the purchase or self‑supply by completing the applicable calculation for the rate of tax you paid. Enter the result on line K.

Line L

Enter on line L the FMV (see “Fair market value”) of the residential complex or addition (building and land) on the date you indicated that the tax became payable on the purchase or self‑supply in Section B on page 1 of Form GST524. Do not include any GST/HST that is payable on the FMV.

Line M

If the co‑op purchased the residential complex, enter on line M the purchase price of the residential complex (not including the GST/HST payable on the purchase).

Line N

Enter on line N the total floor space, in square metres, of the unit.

Line O

Enter on line O the total square metres of floor space for all of the residential units in the newly constructed or substantially renovated complex (including any residential units that are not qualifying residential units). Do not include the square metres for common areas.

If you are claiming an NRRP rebate for a single unit residential complex, including a duplex, a residential condominium unit or an addition to a multiple unit residential complex that only includes one residential unit, the square metres of floor space that you enter on line O will be the same as the total floor space you entered on line N.

Line P

Calculate the unit percentage of floor space. To do this, divide the amount of square metres of floor space for the unit from line N by the total square metres of floor space of all of the residential units (from line O). Multiply the result by 100 to get a percentage. Enter this percentage on line P.

Line Q

Calculate the FMV of the qualifying residential unit. To do this, multiply the amount from line L by the percentage of floor space of the unit from line P. Enter the result on line Q.

Line R

Multiply the amount from line K by 36%. Multiply that result by the percentage of floor space from line P.

Enter this result on line R.

Line S

Enter the amount that corresponds to the rate of tax that you paid on line S.

Line T

If the amount on line Q is $350,000 or less, enter the amount from line S on line T. If the amount on line Q is more than $350,000, complete the calculation as indicated and enter the result on line T.

If the result is negative, enter “0.” This means that an NRRP rebate amount for some of the GST or federal part of the HST is not payable since the FMV exceeds the maximum threshold for this rebate.

Line U

Your NRRP rebate is reduced by any GST/HST new housing rebate that the purchaser of a share of the capital stock of the co‑op is entitled to claim for the unit that the share entitles them to. Complete lines U to W only if the purchaser was entitled to claim the GST/HST new housing rebate. If not, enter “0” on line W and go to line X.

Enter on line U the total amount of the sale price for the share of the capital stock.

Line V

Enter on line V the result of the calculation up to the maximum that applies, as indicated under “Rebate rate”. Complete the calculation at line V using the rebate rate that applies to you (see “Rebate rate”).

Rebate rate
Only one rebate rate can apply.

Use 1.57% if the unit is located in Nova Scotia, the co‑op had to pay HST at 15%, and the agreement for the sale of the share was entered into on or after July 1, 2010.

If your rebate rate is 1.57%, the maximum you can enter on line V is $6,300.

Use 1.60% if the unit is located in New Brunswick or Newfoundland and Labrador, the agreement for the sale of the share was entered into on or after July 1, 2010, and the purchaser of the share files their GST/HST new housing rebate application on or after that date.

Also use 1.60% if the unit is located in Ontario, the co‑op had to pay HST at 13%, and the purchaser of the share files their GST/HST new housing rebate application on or after July 1, 2010.

If your rebate rate is 1.60%, the maximum you can enter on line V is $6,300.

Use 1.61% if the unit is located in British Columbia, the co‑op had to pay HST at 12%, and the purchaser of the share files their GST/HST new housing rebate application on or after July 1, 2010.

If your rebate rate is 1.61%, the maximum you can enter on line V is $6,300.

Use 1.71% if one of the following situations applies to you:

• Situation A: The co‑op had to pay GST at 5% or, where the unit is located in Nova Scotia, New Brunswick, or Newfoundland and Labrador, the co‑op had to pay HST at 13% and the agreement for the sale of the share was entered into before April 7, 2010.
• Situation B: The unit is located in New Brunswick or Newfoundland and Labrador, the purchaser of the share files their GST/HST new housing rebate application after April 6, 2010, and the agreement for the sale of the share was entered into after April 6, 2010, but before July 1, 2010.
• Situation C: The unit is located in Nova Scotia, the co‑op had to pay the HST at 13%, and the agreement for the sale of the share was entered into after April 6, 2010, but before July 1, 2010.

If your rebate rate is 1.71%, the maximum you can enter on line V is $6,300.

Use 2.04% if the co‑op had to pay GST at 6% or HST at 14%.

If your rebate rate is 2.04%, the maximum you can enter on line V is $7,560.

Use 2.34% if the co‑op had to pay GST at 7% or HST at 15% before July 1, 2006.

If your rebate rate is 2.34%, the maximum you can enter on line V is $8,750.

Line W

Complete the calculation that corresponds to the rebate rate you used to complete line V. Only one calculation will apply to your situation.

If the amount from line U is equal to or less than the threshold amount indicated on the form, enter the amount from line V on line W. If the amount on line U is more than the threshold amount indicated on the form, complete the calculation as indicated and enter the result on line W.

If the result is negative, enter “0.” This means that a GST/HST new housing rebate amount for some of the GST or federal part of the HST is not payable to the purchaser of the share since the FMV exceeds the maximum threshold amount for that rebate.

Line X

Subtract the amount on line W from the amount on line T. Enter the result on line X. This is your NRRP rebate amount for some of the GST or federal part of the HST.

Line Y

If your residential rental property is situated in Ontario or British Columbia, enter the provincial rebate amount that you calculated on the applicable provincial rebate schedule on line Y. If you are not entitled to claim the NRRP rebate for some of the federal part of the HST only because the FMV of the qualifying residential unit exceeds the maximum threshold amount, you are still entitled to claim the provincial NRRP rebate.

Enter “0” if the residential rental property is not situated in Ontario or British Columbia.

Line Z

Add the amounts you entered on line X and line Y and enter the result on line Z. This is your total NRRP rebate.

You are now ready to certify your application. Go to Section F on page 4 of Form GST524. For more information, see “Section F – Certification”.

Completing the provincial rebate schedules

To claim the provincial new residential rental property (NRRP) rebate, all eligible claimants, regardless of the application type, must complete sections A, B, C, and F of Form GST524, GST/HST New Residential Rental Property Rebate Application, and the applicable provincial rebate schedule.

Note
You have to complete Form GST524 even if you are not entitled to claim the NRRP rebate for some of the federal part of the HST only because the fair market value (FMV) of the property exceeds the maximum threshold amount for that rebate.

If the rental property is located in British Columbia, use Form RC7524‑BC, GST524 British Columbia Rebate Schedule. For properties in Ontario, use Form RC7524‑ON, GST524 Ontario Rebate Schedule.

The application types and filing deadlines for the provincial NRRP rebate for some of the provincial part of the HST are the same as for the GST/HST NRRP rebate. For more information, see “Application types”.

Send your completed provincial rebate schedule together with Form GST524 and, if applicable, Form GST525 to the address on Form GST524.

The following completion instructions apply to both provincial rebate schedules.

Section A – Claimant information

It is important that you enter your legal name and Business Number, if applicable, in case this schedule becomes separated from your GST524 rebate application.

After completing Section A, complete only the section that applies to your situation, depending on the application type and whether you are claiming a provincial NRRP rebate for a single unit or multiple units.

Section B – Rebate calculation for Type 6 (single unit)

For information on Type 6 applications, see “Application Type 6: Lease of building and land” on page 11.

Line A

The provincial NRRP rebate is only available for some of the provincial part of the HST paid on the purchase or self‑supply of the residential complex or addition. To calculate the provincial part of the HST, multiply the total HST paid on the purchase or self‑supply by the fraction indicated at line A of the schedule and enter the result on line A.

Line B

Enter on line B the fair market value FMV of the residential complex or addition (building and land) on the date the tax became payable on the purchase or self‑supply (as you indicated in Section B on page 1 of Form GST524). Do not include any HST that is payable on the FMV.

For more information, see “What is a self‑supply?” and “Fair market value”.

Line C

If you purchased the residential complex, enter on line C the purchase price of the complex, not including the HST payable on the purchase price.

Line D

If the property is situated in Ontario, multiply the amount from line A by 75% and enter on line D the result of the calculation or $24,000, whichever amount is less.

If the property is situated in British Columbia, multiply the amount from line A by 71.43% and enter on line D the result of the calculation or $26,250, whichever amount is less.

This is your provincial NRRP rebate amount.

If you are entitled to claim an NRRP rebate for some of the federal part of the HST, complete sections A, B, C, D, and F of Form GST524 and enter the amount from line D of this form on line G of Form GST524.

If you are not entitled to claim an NRRP rebate for some of the federal part of the HST, you do not have to enter this amount on Form GST524. However, you have to complete sections A, B, C, and F of Form GST524.

If you have also completed Form GST524, you are now ready to file your NRRP rebate application. See “Filing your NRRP rebate application”.

Section C – Rebate calculation for Type 7 (single unit)

You are not entitled to claim this rebate if the purchaser of the building part of the complex is not entitled to claim the provincial new housing rebate.

For information on Type 7 applications, see “Application Type 7: Sale of building and lease of land”.

Line E

The provincial NRRP rebate is only available for some of the provincial part of the HST paid on the self‑supply. To calculate the provincial part of the HST, multiply the total HST paid on the self‑supply by the fraction indicated at line E of the schedule and enter the result on line E.

Line F

Enter on line F the FMV of the residential complex or addition (building and land) on the date tax became payable on the self‑supply (the date you indicated in Section B on page 1 of Form GST524). Do not include any HST that is payable on the FMV. For more information, see “What is a self‑supply?” and “Fair market value”.

Line G

If the property is situated in Ontario, multiply the amount from line E by 75% and enter on line G the result of the calculation or $24,000, whichever amount is less.

If the property is situated in British Columbia, multiply the amount from line E by 71.43% and enter on line G the result of the calculation or $26,250, whichever amount is less.

Line H

Enter on line H the sale price for the building only.

Line I

Your provincial NRRP rebate is reduced by the provincial new housing rebate that the purchaser of the building part of the complex is entitled to claim. If the purchaser of the building part of the complex is not entitled to claim the provincial new housing rebate, you are not entitled to claim the provincial NRRP rebate.

To determine the reduction, multiply the amount from Line H by the percentage indicated at line I of the schedule.

For Ontario, enter the result of the calculation or $24,000, whichever is less.

For British Columbia, enter the result of the calculation or $26,250, whichever is less.

Line J

Subtract the amount on line I from the amount on line G and enter on line J:

• for Ontario, the result of the calculation or $24,000, whichever is less; or
• for British Columbia, the result of the calculation or $26,250, whichever is less.

This is your provincial NRRP rebate amount.

If you are entitled to claim an NRRP rebate for some of the federal part of the HST, complete sections A, B, C, D, and F of Form GST524 and enter the amount from line J of this form on line M of Form GST524.

If you are not entitled to claim an NRRP rebate for some of the federal part of the HST, you do not have to enter this amount on Form GST524. However, you have to complete sections A, B, C, and F of Form GST524.

If you have also completed Form GST524, you are now ready to file your NRRP rebate application. See “Filing your NRRP rebate application”.

Section D – Rebate calculation for Type 8 (unit in a co‑op)

A provincial NRRP rebate for some of the provincial part of the HST is available under Type 8 only for units in a co‑op that are qualifying residential units. For information on Type 8 applications, see “Application Type 8: Co‑operative housing corporation (co‑op) units”.

Line K

The provincial NRRP rebate is only available for some of the provincial part of the HST paid on the purchase or self‑supply of the complex. To calculate the provincial part of the HST, multiply the total HST paid on the purchase or self‑supply by the fraction indicated at line K of the schedule and enter the result on line K.

Line L

Enter on line L the FMV of the residential complex or addition (building and land) on the date tax became payable on the purchase or self‑supply (as you indicated in Section B on page 1 of Form GST524). Do not include any HST that is payable on the FMV. For more information, see “What is a self‑supply?” and “Fair market value”.

Line M

Enter on line M the purchase price of the residential complex, not including the HST.

Line N

Enter on line N the total floor space, in square metres, of the qualifying residential unit.

Line O

Enter on line O the square metres of floor space for all of the residential units in the newly constructed or substantially renovated complex (including any residential units that are not qualifying residential units). Do not include the square metres for common areas.

If you are claiming a rebate for a single unit residential complex, including a duplex, a residential condominium unit or an addition to a multiple unit residential complex that only includes one residential unit, the square metres of floor space that you enter on line O will be the same as the total floor space you entered on line N.

Line P

Calculate the unit percentage of floor space. To do this, divide the amount of square metres of floor space for the unit (from line N) by the total square metres of floor space of all of the residential units (from line O). Multiply the result by 100 to get a percentage. Enter this percentage on line P.

Line Q

Calculate the FMV of the qualifying residential unit. To do this, multiply the amount from line L by the percentage of floor space of the unit from line P. Enter the result on line Q.

Line R

Multiply the amount from line K by the percentage indicated at line R of the schedule. Multiply that result by the percentage of floor space from line P.

Enter the result on line R to the maximum indicated at line R of the schedule.

Line S

Your provincial NRRP rebate is reduced by any provincial new housing rebate that a purchaser of a share of the capital stock of the co‑op is entitled to claim for the unit. Complete lines S and T only if the purchaser was entitled to claim the new housing rebate for some of the provincial part of the HST. If not, enter “0” on line T and go to line U.

Enter on line S the total amount of the sale price for the share of the capital stock.

Line T

Multiply the amount from line S by the percentage indicated at line T of the schedule and enter the result on line T.

Line U

Subtract the amount on line T from the amount on line R and enter on line U:

• for Ontario, the result of the calculation or $24,000, whichever is less; or
• for British Columbia, the result of the calculation or $26,250, whichever is less.

This is your provincial NRRP rebate amount.

If you are entitled to claim an NRRP rebate for some of the federal part of the HST, complete sections A, B, C, and F of Form GST524, sections A and C of Form GST525, and enter the amount from line U of this form on line Y of Form GST525.

If you are not entitled to claim an NRRP rebate for some of the federal part of the HST, you do not have to enter this amount on Form GST525. However, you have to complete sections A, B, C, and F of Form GST524.

If you have already completed Form GST524 and GST525 (if applicable), you are now ready to file your NRRP rebate application. See “Filing your NRRP rebate application”.

Section E – Rebate calculation for Type 6 and Type 7 (multiple units)

For information on Type 6 applications, see “Application Type 6: Lease of building and land”.

For information on Type 7 applications, see “Application Type 7: Sale of building and lease of land”.

Part I – Calculation for unit(s) in a multiple unit residential complex or addition

Line V

The provincial NRRP rebate is only available for the provincial part of the HST paid on the purchase or self‑supply of the complex or addition. To calculate the provincial part of the HST, multiply the total HST paid on the purchase or self‑supply by the fraction indicated at line V of the schedule and enter the result on line V.

Line W

Enter on line W the FMV of the residential complex or addition (building and land) on the date tax became payable on the purchase or self‑supply (as you indicated in Section B on page 1 of Form GST524). Do not include any GST/HST that is payable on the FMV. For more information, see “What is a self‑supply?” and “Fair market value”.

Line X

If you purchased the residential complex, enter on line X the purchase price of the complex, not including the HST payable on the purchase price.

Line Y

Multiply the amount from line V by the percentage indicated at line Y of the schedule and enter the result on line Y.

Line Z

Enter on line Z the total square metres of floor space for all residential units in the newly constructed or substantially renovated complex (including any residential units that are not qualifying residential units). Do not include the square metres for common areas.

Part II – Rebate calculation chart

Complete one row of the chart for each qualifying residential unit. If you need more space, photocopy the chart or use another one.

If you use more than one chart, number the pages and attach them together. Send them with your NRRP rebate application (Form GST524).

Column 1

Enter in column 1 the unit number of the qualifying residential unit for which you are claiming a rebate. Complete one row of the chart for each unit.

Column 2

Enter in column 2 the square metres of floor space of the unit.

Column 3

Calculate the percentage of floor space of each unit. To do this, divide the number of square metres of floor space of the unit (in column 2) by the total square metres of floor space of all of the residential units (on line Z). Multiply the result by 100 to get a percentage. Enter this percentage in column 3.

Column 4

Multiply the amount from line Y by the percentage of floor space of the unit in column 3. Enter the result in column 4.

Column 5

Enter the amount from column 4 or the maximum indicated at the top of column 5, whichever is less. This is the provincial NRRP rebate for the unit.

Part III – Rebate totals for application Type 6 and Type 7 (unit(s) in a multiple unit residential complex or addition)

Line AA

Add up the total of all units you entered in Column 1 of the chart in Part II and enter the total on line AA.

Line BB

Enter on line BB the total amounts you calculated in column 5 of the chart in Part II. If you needed extra space and used more than one copy of the chart, total all of the amounts in column 5 from all pages and enter the total rebate amount for all of the qualifying residential units listed in the chart.

This is your total provincial NRRP rebate amount.

If you are entitled to claim an NRRP rebate for some of the federal part of the HST, complete sections A, B, C, and F of Form GST524, sections A and B of Form GST525, and enter the amount from line BB of this form on line I of Form GST525.

If you are not entitled to claim an NRRP rebate for some of the federal part of the HST, you do not have to enter this amount on Form GST525. However, you have to complete sections A, B, C, and F of Form GST524.

If you have also completed Form GST524, you are now ready to file your NRRP rebate application. See “Filing your NRRP rebate application”.

Section F – Rebate calculation for Type 9A and Type 9B

A provincial NRRP rebate for some of the provincial part of the HST for a lease of land may be available under application Type 9A or Type 9B. For information on Type 9A and Type 9B rebates, see “Application Type 9A or Type 9B: lease of land”.

Line CC

The provincial NRRP rebate is only available for the provincial part of the HST.

The amount you have to enter on line CC is determined differently depending on whether you paid tax:

• calculated on the FMV of the land; or
• equal to the basic tax content of the land.

If you paid HST on the FMV of the land, multiply the HST paid by the fraction indicated at line CC of the schedule to calculate the provincial part of the HST. Enter the result on line CC.

If you paid tax equal to the basic tax content of the land, enter the provincial part of the HST that is included in the basic tax content of the land on line CC.

For more information, see GST/HST Memoranda 19.2.3, Residential Real Property – Deemed Supplies.

Line DD

Enter on line DD the FMV of the land at the time the self‑supply occurred (the date you indicated in Section B on page 1 of Form GST524). Do not include any HST that is payable on the FMV. For more information, see “What is a self‑supply?” and “Fair market value”.

Note
A self‑supply can occur if you give possession of the land under an exempt lease for the residential use of the land. In this case, you are deemed to have paid the HST on the FMV of the land at the time of self‑supply. A self‑supply can also occur if there is a change in use of the land as described above. In this case, you are deemed to have paid the HST equal to the basic tax content of the land at the time of the change in use. For more information, see GST/HST Memoranda 19.2.3, Residential Real Property–Deemed Supplies.

Line EE

Multiply the amount from line CC by the percentage indicated at line EE of the schedule. Enter the result on line EE.

Note
If the lease is for land that is not a site in a residential trailer park or an addition to such a park, go to line II.

If the lease is for land in a residential trailer park or an addition to such a park, continue to line FF.

Line FF

Enter on line FF the total number of sites in the residential trailer park or in the addition to it at the time of self‑supply.

Line GG

Divide the amount on line CC by the number of sites indicated on line FF and enter the result on line GG.

Line HH

Multiply the amount on line GG by the percentage indicated at line HH of the schedule, up to the maximum amount indicated on the schedule and enter the result on line HH.

Line II

If the leased land is not a site in a residential trailer park or an addition to such a park, enter:

• for Ontario, the amount from line EE or $7,920, whichever is less; or
• for British Columbia, the amount from line EE or $8,663, whichever is less.

If the leased land is a site in a residential trailer park or an addition to such a park, enter the result of line HH multiplied by line FF.

This is your provincial NRRP rebate amount.

If you are entitled to claim an NRRP rebate for some of the federal part of the HST, complete sections A, B, C, E, and F of Form GST524 and enter the amount from line II of this form on line U of Form GST524.

If you are not entitled to claim an NRRP rebate for some of the federal part of the HST, you do not have to enter this amount on Form GST524. However, you have to complete sections A, B, C, E, and F of Form GST524.

If you have also completed Form GST524, you are now ready to file your NRRP rebate application. See “Filing your NRRP rebate application”.

Repayment of the NRRP rebate

You will have to repay the NRRP rebate if you claimed a rebate for Type 6 – Lease of building and land, and all of the following conditions are met:

• the rebate was for a qualifying residential unit (other than a unit located in a multiple unit residential complex);
• the unit is sold within one year after it is first occupied as a place of residence after its construction or after the last substantial renovation of the unit was substantially completed (except when the unit is seized or repossessed by a creditor, or transferred to an insurer to settle an insurance claim); and
• the purchaser is not buying the unit for his or her use as a primary place of residence or for a relation of the purchaser.

In this situation, you will have to repay an amount equal to the rebate plus interest at the prescribed rate. The interest will apply for the period beginning on the day the rebate was paid to you or used to reduce an amount you owed and ending on the day you repay the rebate.

Filing your NRRP rebate application

If you are a GST/HST registrant, you may be able to include your total new residential rental property (NRRP) rebate amount, including any provincial NRRP rebate amount, on your GST/HST return.

Note
If the property for which you are claiming an NRRP rebate is owned by more than one person, you will not be able to include the NRRP rebate amount on your GST/HST return. In this case, mail the NRRP rebate application and supporting documentation to the Summerside Tax Centre at the address listed below.

Effective July 1, 2010, most GST/HST registrants have to file their GST/HST returns electronically for reporting periods that end after June 2010. For more information, see GST/HST Info Sheet GI‑099, Builders and Electronic Filing Requirements, and Guide RC4022, General Information for GST/HST Registrants, or go to Goods and services tax/harmonized sales tax (GST/HST).

If you are filing your GST/HST return using GST/HST NETFILE, and you have to report transitional information that relates to the implementation of the HST in Ontario or British Columbia, enter the total amount of your NRRP rebate on line 1301 of Schedule A, Builders – Transitional Information, of your GST/HST NETFILE return. If you do not have to complete Schedule A, enter the total NRRP rebate amount on line 111 of your GST/HST NETFILE return.

If you file your return using one of the other electronic options, enter the total NRRP rebate amount on line 111 of your GST/HST return.

If you file your GST/HST return electronically, send all of the forms listed below and all other required documents to:

Summerside Tax Centre
275 Pope Road
Summerside PE   C1N 6A2

You must send this information to the Summerside Tax Centre no later than the day you electronically file your return.

If you file a paper GST/HST return, enter the rebate on line 111.

If you are filing a paper return, send all of the following forms, and all other required documents, together with your return:

• Form GST524, GST/HST New Residential Rental Property Rebate Application;
• Form GST525, Supplement to the New Residential Rental Property Rebate Application – Co‑op and Multiple Units (if applicable); and
• the appropriate provincial NRRP rebate schedule (if you are entitled to claim a provincial NRRP rebate).

Note
You cannot file your GST/HST return at a financial institution if you are offsetting an amount owing on the return by your NRRP rebate. In this case, you have to mail your return and remittance to the address shown on your return or use one of the electronic filing options. If you file your return at a financial institution, the processing of your return and rebate application may be delayed.

If you have questions about the status or processing of your rebate application, call 1-800-565-9353.

GST/HST transitional rebates

The GST/HST transitional rebate accounts for the reduction in the rate of GST/HST in 2006 and 2008. If you entered into a purchase and sale agreement for the purchase of a new residential complex before October 31, 2007, you may be entitled to claim one or both transitional rebates, depending on your situation.

2008 transitional rebate

You may be entitled to claim the 2008 transitional rebate if you and a builder entered into a purchase and sale agreement after May 2, 2006, and before October 31, 2007, to buy a new or substantially renovated residential complex and both ownership and possession transferred to you after December 31, 2007.

2006 transitional rebate

You may be entitled to a 2006 transitional rebate if you and a builder entered into a purchase and sale agreement before May 3, 2006, to buy a new or substantially renovated residential complex, both ownership and possession transferred to you after June 30, 2006, and either ownership or possession was transferred to you before January 1, 2008.

2006 and 2008 transitional rebates

You may be entitled to both the 2006 and 2008 transitional rebates if you and a builder entered into a purchase and sale agreement before May 3, 2006, to buy a new or substantially renovated residential complex and both ownership and possession transferred to you after December 31, 2007.

These rebates account for the reduction in the rate of GST/HST in 2006 and 2008. If you can claim an NRRP rebate, the transitional rebate will take this into account. If you cannot claim an NRRP rebate because the maximum threshold is exceeded, you may still be eligible to claim the transitional rebate. For more information, see Form GST193, GST/HST Transitional Rebate Application for Purchasers of New Housing.

Builders may also be able to claim the transitional rebate when they self-assess on a new residential complex and sell the building part of the complex to a person who leases the land part of the complex from that same builder. For more information, see Form GST192, GST/HST Transitional Rebate Application for Builders of New Housing on Leased Land.

For more information

Contact us if, after reading this guide, you would like to get forms or publications, or you need more help.

To get forms or publications, go to Topics - GST/HST or call 1-800-959-2221.

For more information, go to Goods and services tax/harmonized sales tax (GST/HST) or call 1-800-959-5525.

Teletypewriter (TTY) users

TTY users can call 1-800-665-0354 for bilingual assistance during regular business hours.

Direct deposit

Direct deposit is a safe, convenient, dependable, and time saving method of receiving your GST/HST refunds and rebates. If you are expecting refunds or rebates when you file your GST/HST returns or rebate applications, you can send us a completed Form GST469, Direct Deposit Request. To get Form GST469, go to Direct deposit or call 1-800-959-2221.

 

GST/HST rulings and interpretations

You can request a ruling or interpretation on how the GST/HST applies to a specific transaction for your operations. This service is provided free of charge. For more information, see GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, available at GST/HST rulings and interpretations or call 1-800-959-8287.

Representatives

You can authorize a representative, such as your accountant, to get information about your GST/HST matters by using My Business Account. For more information, go to My Business Account.

You can also authorize a representative, by sending us a completed Form RC59, Business Consent Form.

You must clearly indicate that you are authorizing the representative to contact us regarding your GST/HST account. We will also accept a letter signed by an owner that provides the same information as requested on Form RC59. We will only give information to your representative after we are satisfied that you have authorized us to do so.

GST/HST electronic filing and remitting

You have several options for filing your GST/HST return or remitting an amount owing electronically. For more information, go to How to send us your GST/HST return.

My Business Account

Access your business accounts online through My Business Account. With the wide range of services offered, you can:

• view your account balances and transactions;
• transfer payments;
• get additional remittance vouchers;
• calculate a future balance;
• calculate your instalment payments;
• make online requests for financial transactions;
• authorize your employees and representatives to have immediate online access;
• file a GST/HST return electronically;
• view the status of a return;
• view certain correspondence (for example, notices and letters); and
• view your banking information.

To use My Business Account, you need a user ID and password. To register for these secure online services or to check for new services, go to My Business Account.

My Payment

My Payment is a payment option that allows individuals and businesses to make payments online, using the Canada Revenue Agency’s Web site, from an account at a participating Canadian financial institution. For more information on this self‑service option, go to My Payment.

Our Service Complaint process

If you are not satisfied with the service you have received, contact the Canada Revenue Agency (CRA) employee you have been dealing with (or call the phone number you have been given). If you still disagree with the way your concerns are being addressed, ask to discuss your matter with the employee’s supervisor.

If the matter is still not resolved, you have the right to file a service complaint by completing Form RC193, Service-Related Complaint. If you are still not satisfied with the way the CRA has handled your complaint, you can contact the Taxpayers' Ombudsman.

For more information, go to CRA – Service Complaints: Overview or see Booklet RC4420, Information on CRA – Service Complaints.

Your opinion counts!

If you have any comments or suggestions that could help us improve our publications, we would like to hear from you. Please send your comments to:

Taxpayer Services Directorate
Canada Revenue Agency
750 Heron Road
Ottawa ON  K1A 0L5