Starting in 2009 first-time home buyers’ are eligible to claim a $5,000 tax credit in the year that their home is purchased. Many people are not aware of this, and I have even encountered people who do their own taxes and have missed out on the credit because they were not aware of it.
To qualify for this credit you or your spouse/common-law partner must purchase a qualifying home and neither of you can have lived in a home owned by either of you in the year of purchase or any of the four preceding years. You and your spouse do not both receive the $5,000 credit, but either one of you can claim it or it can be split between the two of you as long as the total does not exceed $5,000.
A qualifying home includes:
If you are not familiar with basic tax rules and credits I would encourage you to get the assistance of a designated accountant to assist you with your tax returns to ensure that you are not missing any significant tax credits such as the First-Time Home Buyers’ Tax Credit. If you have any questions related to the First-Time Home Buyer’s Tax Credit or if you want the peace of mind having a chartered accountant complete your tax return for you please contact us at firstname.lastname@example.org , 604 510-0156, or visit our website at https://wattsca.ca for more information.
Disclaimer: The information in the blog is for general information only and is not intended to be a substitute for professional advice. Each person’s situation is unique, and a designated professional accountant can assist you in using the information on this blog to your best advantage. The author of this blog strives, but does not guarantee, to provide information which is current and accurate. Due to the nature of the information, it should not be relied upon for decision making without talking to a designated professional accountant. By obtaining information from this blog, you fully release Steve Watts, Chartered Accountant of any liability that may arise from using this information.