First Time Homebuyers Credit
By Nizam Shajani, CPA, CA, MBA
Buying your first home is an exciting milestone. While some of the financial aspects could be daunting, there is a simple credit that should be considered when filing your personal tax this year.
Qualifying for the Credit
The following conditions need to be met to qualify for the homebuyer’s credit;
- Either you, your common-law partner or spouse acquired a qualifying home.
- You didn’t live in any other home in the past 4 years owned by you, your common-law partner or spouse.
If both the above conditions are met, then you should qualify for the First time homebuyers Tax Credit.
Note that you do not have to be a first-time homebuyer if you are eligible for the disability tax credit or if you acquired the home for the benefit of a related person who is eligible for the disability tax credit. Some restrictions apply.
The home must be registered in your, your common-law partner or spouse’s name. Listing one of these names on title at the registry is necessary. The property could be;
- Single-family house
- Semi-detached house
- Mobile home
- Condominium unit
- Apartments in duplexes, triplexes, fourplexes, or apartment buildings
Note a share that only gives you the right to tenancy in the housing unit does not qualify.
How much do you get?
You may claim $5,000 for the purchase of qualifying home in the year of purchase. This credit would be applied at 15% for a $750 savings on your personal tax return.
You and your spouse may split the claim; however, the total claim cannot exceed $5,000.
This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. © 2020 Shajani LLP