Buying your first home is a momentous occasion in your life.
First, you have to save for the down payment.
Next, you have to qualify for a mortgage.
Then you have to find the place of your dreams, within your budget, and go through all the red tape of closing the deal.
It can be a stressful time and, sometimes, it may not even feel like it’s worth it.
Until you turn your very own key in your very own lock and open your very own door for the first time.
Then it all comes together … well, after you move in and find everything its perfect place.
Did you know there’s a First Time Home Buyers Tax Credit?
Hey, that’s good news
Yep, the Canada Revenue Agency offers newbie homeowners a little help with the costs associated with the purchase of a home. It’s a $5,000 non-refundable HBTC amount that applies to qualifying homes and provides up to $750 federal tax relief.
You could use that to pay down your legal fees, disbursements or land transfer taxes.
Or a new couch. Fill y’er boots.
How do I qualify
The government says you’re a first-time home buyer if neither you nor your spouse or common-law partner has owned and lived in another home in the year of the home purchase or in any of the four preceding calendar years.
The home must be:
- Located in Canada
- Your principal place of residence (or that of your spouse or common-law partner) no later than one year after its acquisition
It can be:
- Existing or newly constructed
- Any form of housing, including single-family, semi-detached, townhouse, mobile home, condominium unit, duplex, triplex, fourplex or apartment building
- A share in co-operating housing corporation that entitles your to possess and give you an equity interest in a housing unit
Can I split the credit with a co-buyer?
Yes. If two or more eligible individuals jointly buy a home, the credit may be shared but the total amount cannot exceed $5,000.
How do I claim the credit?
The good news is, you can claim the Home Buyers Tax Credit on your income tax return the same year you make your purchase.
Enter your credit on Line 369 of your T-1 income tax return.
Can you help?
We sure can. Contact one of our tax specialists and we can help you wade through the tax benefits and credits available to Canadians. Our services are even tax deductible. Tax software isn’t.
Fill out our contact form or give A1 Accounting a call at 403-226-8297.