CRA GST/HST Housing Rebate Audit — Montreal CPA Firm Near You: Defending Your New Home, Rental, and Assignment Rebates

A CRA GST/HST Housing Rebate Audit is launched when CRA questions your eligibility for the New Housing Rebate (NHR), New Residential Rental Property Rebate (NRRPR), or Assignment/Builder rebates. These rebates can be worth tens of thousands of dollars, and CRA aggressively audits claims involving new builds, pre-construction condos, assignments, renovations, and rental conversions.

Mackisen CPA Montreal specializes in defending housing rebates by proving occupancy, intention, builder vs. consumer status, and rental qualification, while preparing airtight documentation that satisfies CRA’s strict audit criteria.

Housing rebate audits often become six-figure reassessments if not defended early and correctly.

Legal Foundation

Excise Tax Act s.254 — New Housing Rebate rules (owner-built and builder-built).
Excise Tax Act s.256.2 — New Residential Rental Property Rebate rules.
Excise Tax Act s.191 — Self-assessment rules for new residential complexes and rental conversions.
Case law:
• Cheema v. Canada — beneficial ownership determines rebate eligibility.
• Tarnowe v. Canada — CRA can deny rebates where occupancy cannot be proven.

Learning insight: Housing rebates are eligibility + intention + occupancy cases — and CRA requires documentation for each.

Why CRA Audits Housing Rebates

CRA flags rebate claims when it detects:
• purchase of pre-construction condos without occupancy
• quick sale after closing → suspected flip (no genuine residence)
• assignment purchases or sales with unclear GST treatment
• lack of evidence showing the home was actually lived in
• rental properties without proper long-term leases
• mixed-use (Airbnb + personal use) properties
• discrepancies between rebate forms and mortgage/banking records
• homes built “for personal use” but marketed for sale

Learning insight: CRA assumes a rebate is invalid until you prove it’s valid.

CRA Housing Rebate Audit Process

1. CRA requests:
   – builder agreement / APS
   – closing documents
   – mortgage statements
   – utility bills
   – driver’s license address
   – insurance documents
   – lease agreements (if rental rebate)
   – assignment agreements (if applicable)

2. CRA reconstructs the story of the property: who lived there, when, and for what purpose.

3. CRA tests eligibility under s.254 and s.256.2.

4. CRA may classify you as a builder if the property was flipped.

5. CRA issues a Proposed Audit Adjustment.

6. Mackisen CPA responds with proof, timelines, and legal justification.

Learning insight: Housing rebate audits are won with timeline reconstruction — not explanations.

Mackisen CPA’s Housing Rebate Defense Strategy

• prove occupancy (utility usage, move-in proof, address changes, personal records)
• defend principal residence intention with structured evidence
• prove long-term rental intention (leases, ads, insurance, banking)
• defend assignment transactions with correct GST/HST logic
• challenge improper “builder classification”
• reconstruct all documentation to satisfy CRA
• file amended GST/HST returns when needed
• negotiate full or partial rebate approval

Learning insight: Every rebate audit boils down to intent + evidence. We structure both.

Common CRA Findings in Housing Rebate Audits

• rebate denied due to lack of occupancy evidence
• CRA reclassifies buyer as “builder” → rebate lost + GST/HST owing
• incorrect GST/HST treatment on assignments
• rental rebate denied due to short-term rental (Airbnb) activity
• property sold too quickly → CRA assumes flipping
• incomplete rebate forms or incorrect beneficiary names
• mismatched addresses on IDs, utilities, and mortgage
• substantial renovations misclassified as new housing

Learning insight: CRA denies rebates fast — but they approve when evidence is airtight.

Real-World Results

• A pre-construction buyer kept a $24,000 NHR after Mackisen CPA proved full occupancy using hydro usage, insurance, and address history.
• A landlord retained a $32,000 rental rebate after we documented long-term rental intention despite a temporary vacancy.
• An investor avoided a $68,000 GST reassessment on an assignment after we proved GST was already included in the builder price.
• A client suspected of “flipping” was cleared when we reconstructed a complete residency timeline and reversed CRA’s builder classification.

Learning insight: The clearer your documentation, the smaller CRA’s assumptions become.

SEO Optimization and Educational Value

Primary keywords: GST/HST housing rebate audit, CRA new housing rebate audit, rental rebate audit Montreal, Mackisen CPA, GST/HST real estate audit
Secondary keywords: principal residence proof, builder classification audit, assignment GST audit, rebate denial appeal

Learning insight: Detailed educational content builds credibility — with CRA and with clients seeking rebate-audit help.

Why Mackisen CPA Montreal

With 35+ years defending GST/HST real estate audits, Mackisen CPA Montreal is Québec’s leading authority on housing rebate reviews. We understand the laws, the case precedents, and CRA’s internal decision framework. Our bilingual CPAs build complete, persuasive rebate defense files that withstand CRA scrutiny.

Learning insight: Housing rebates are paperwork battles — and we build unbeatable paperwork.

Call to Action

If CRA is auditing your housing rebate, assignment, or rental rebate, get professional defense immediately.
Contact Mackisen CPA Montreal for housing rebate audit defense, documentation reconstruction, and GST/HST correction strategies.
Phone: 514-276-0808 | Email: info@mackisen.com | Website: mackisen.com

Learning conclusion: A CRA Housing Rebate Audit tests intent, use, and eligibility. Mackisen CPA Montreal ensures every requirement is documented, proven, and defended so your rebate stays in your pocket.