First Time Home Buyers’ Tax Credit

I came across an article that I thought you might find helpful. As a first-time home buyer, you may be eligible to claim a $5,000 credit on your tax return when you file this year. I’ve attached the article and the reference from the CRA site below. I am not a tax specialist, so I suggest you speak to whomever prepares your taxes (or do a little research) to make sure this is the right fit for you!

From the Article:
Home Buyers’ Amount

If you are a first-time home buyer, you may be able to claim $5,000 for the purchase of a qualifying home in 2016.

You qualify for the home buyers’ amount if you did not live in another home owned by you or your spouse or common-law partner that year or in any of the four preceding years.

A qualifying home must be located in Canada and registered in your name and/or your spouse’s or common-law partner’s name according to the applicable land registration system. It includes existing homes, such as single-family houses, semi-detached houses, townhouses, mobile homes, condominium units, apartments in duplexes, triplexes, fourplexes, or apartment buildings, as well as homes under construction.

You do not have to be a first-time home buyer if:
•you are eligible for the disability tax credit; or
•you acquired the home for the benefit of a related person who is eligible for the disability tax credit.

From CRA: ( http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/369/menu-eng.html )

Line 369 – Home Buyers’ Amount

You can claim $5,000 for the purchase of a qualifying home in 2016 if both of the following apply:
•you or your spouse or common-law partner acquired a qualifying home; and
•you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).

I encourage you to speak with your tax preparer to see if this credit is something you can claim. It may reduce the amount of tax you owe, or potentially create a refund for you. Who doesn’t like extra cash in their pocket??

Advertisements