First-Time Home Buyers’ Tax Credits

The First-time Home Buyers’ Tax Credit was introduced as part of ‘Canada’s Economic Action Plan’ to assist Canadians in purchasing their first home. It is designed to help recover closing costs, such as legal expenses, inspections, and land transfer taxes, so you can save more for money for a down payment.1

The Home Buyers’ Tax Credit, at current taxation rates, works out to a rebate of $750 for all first-time buyers. After you buy your first home, the credit must be claimed within the year of purchase and it is non-refundable. In addition, the home you purchase must be a ‘qualified’ home, described in more detail below. If you are purchasing a home with a spouse, partner or friend, the combined claim cannot exceed $750.2

Filing your First-time Home Buyers’ Tax Credit


To receive your $750 claim, you must include it with your personal tax return under line 369.3

How do you qualify for the First-time Home Buyers’ Tax Credit?


In order to be eligible for the First-time Home Buyers’ Tax Credit, your home must meet the following requirements:

  • Be within Canada
  • Be an existing or new home
  • Be a single, semi, townhouse, mobile home, condo, or apartment
  • Can include a share in a co-operative housing corporation that      gives you possession of the home
  • You must intend to occupy the home within one year of purchase3

To personally be eligible for the First-time Home Buyers’ Tax Credit, you must also meet the following requirements:

  • You or your spouse must purchase a qualifying home
  • The home must be registered in either your name or your      spouse’s name
  • You cannot have owned a home in the previous four years
  • You cannot have lived in a home owned by your spouse in the      previous four years
  • You must present documents supporting the purchase of the home3

Home Buyers’ Tax Credit for people with disabilities


If you have a disability and are purchasing a home, you do not need to be a first-time home buyer to claim the Home Buyers’ Tax Cedit, where a person with a disability is defined as a person who can claim a disability amount on their tax return in the year the home is purchased. The Home Buyers’ Tax Credit can be claimed if the home purchased is suitable for the disabled person’s needs, and the disabled person occupies the home within one year from the date of purchase.4

[1]”Canada’s Economic Action Plan”. Government of Canada. Government of Canada. Web. 26 November 2010. [2]”2009 First Time Home buyer’s Tax Credit”. Homelegalcost.com. Stephen H.  Shub Professional Corporation. 1 January 2008. Web. 26 November 2010.[3] “Fact Sheet: First Time Home buyer’s Tax Credit”. Canada Revenue Agency. Canada Revenue Agency. 25 February 2010. Web. 26 November 2010.[4] “The First-Time Home buyer’s Tax Credit”. Meredith Norton. Remax Shuawap Realty. 26 February 2009. Web. 26 November 2010
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