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Goulet v. The Queen (2013 TCC, Graham) – You can get a GST new housing rebate for a renovation but only if it guts the old house

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Mr. Goulet renovated his house and garage, almost doubling its size.  He applied for the HST new housing rebate.  He didn’t get it. 

You are entitled to a new housing rebate if you “substantially renovate” your home.  But the TCC said that to qualify as a “substantial renovation”, “The definition essentially requires that the existing house be gutted.”  (Para. 15.)  An addition, to qualify, must “incorporate [the] existing house to the point where the addition was essentially the new premises and the existing house was a minor aspect of the total.”  (Para. 16.)  “‘An addition that doubles square footage by adding a few rooms in any direction will not qualify for a rebate…'” even if “there were many changes made to the existing house.”  (Paras. 13 and 15.)

See Goulet v. The Queen, (2013 TCC, Graham)

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