At what purchase price does the standard federal GST/HST new housing rebate on a home bought from a builder fall to zero?
Correct Answer
C) $450,000
Under CRA Guide RC4028, the standard federal rebate is full at $350,000 or less, reduced between $350,000 and $450,000, and nil at $450,000 or more. So $450,000 is the price at which it reaches zero.
Why This Is the Correct Answer
RC4028 states that a purchaser whose total price is $450,000 or more is not eligible for the GST/HST new housing rebate on the federal part, although an Ontario buyer may still claim the Ontario rebate. The rebate therefore reaches zero at $450,000.
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