An individual has up to two years from the earlier of these dates to claim the rebate. Only one rebate application may be filed for a particular complex. The rebate claim may include amounts in respect of qualifying property and services incurred within the two years provided the application is filed on time and no previous rebate claim in respect of the same residential complex has been filed.
Unlike rebate claims under section 254 which apply only in respect of the tax paid for the complex or an interest in the complex purchased from the builder of the complex, the rebate claim under section 256 may relate to any qualifying improvement paid to any supplier.
Statement of facts
1. An individual acquires an option to purchase 1/4 hectare of land on February 1, 1991.
2. The individual purchased the land on March 1, 1991 and began construction of a single unit residential complex on March 15, 1991.
3. The individual is constructing the complex for use as the individual's primary place of residence.
4. All the land is reasonably necessary for the use and enjoyment of the building as a place of residence.
5. The individual first occupied the home on July 1, 1991 and he/she filed the GST new housing rebate claim for owner-built homes on July 10, 1992.
6. The fair market value of the complex at substantial completion is $250,000.
7. The individual is claiming a GST new housing rebate for owner built homes with respect to the GST costs incurred in respect of the supply of property and services that were paid for on the following dates in respect of the home.
| Property/Service | Date |
| Option | 91/02/01 |
| Architectural fees | 91/02/15 |
| Land | 91/03/01 |
| Rentals of equipment directly related to the construction of the home | 91/03/15 |
| Purchase of power tools to be used in the construction of the home | 91/03/15 |
| Legal fees related to the purchase of the land and the construction of the home | 91/03/15 |
| Legal fees related to obtaining financing | 91/03/15 |
| Building materials | 91/03/15 |
| Contractors and Subcontractors'services for constructing the home | 91/04/01 |
| Drilling of water well | 91/05/01 |
| Connection and installation of electrical power | 91/05/01 |
| Installation and supply of a septic system | 91/05/15 |
| Hook-up of natural gas | 91/05/15 |
| Purchase and installation of a built-in air conditioner and built-in water-purifier | 91/06/01 |
| Leveling, sodding and landscaping | 91/06/15 |
| Moving expenses | 91/07/01 |
| Purchase and installation of free standing appliances and furniture | 91/07/01 |
| Purchase and installation of wall to wall carpeting | 91/07/15 |
| Purchase of area rugs | 91/07/15 |
| Construction of a patio and an open deck | 91/08/01 |
| Pesticide and weed spraying | 91/08/01 |
| Purchase and installation of drapery hardware | 91/08/15 |
| Purchase of custom made draperies and blinds | 91/08/30 |
| Construction of a detached garage | 91/09/01 |
| Purchase and installation of light and bathroom fixtures | 91/09/15 |
| Pavement of the driveway | 91/10/01 |
| Purchase of a television and a sound system | 91/10/15 |
| Purchase and installation of a pre-wired security system | 91/11/01 |
| Purchase and installation of a built-in vacuum cleaner | 91/11/15 |
| Purchase of art work and home decoratings which are not fixtures | 92/02/15 |
| Purchase of Linen | 92/03/01 |
| Purchase and installation of an in-ground swimming pool | 92/06/01 |
Ruling requested
Which property and services outlined above can be included in the "total tax paid by the particular individual" for purposes of the GST new housing rebate for owner-built homes?
Ruling given
Since the rebate claim was filed within two years of the earlier of substantial completion and occupancy of the home, the following property and services would be considered eligible costs in respect of the qualifying land, interest and improvements that may be
included in determining the total tax paid by the particular individual for purposes of the GST new housing rebate for owner-built homes:
The following property and services are not included in the total tax paid by the particular individual for purposes of the GST new housing rebate for owner-built homes because they are not considered improvements within the meaning of the Act: