First Time Home Buyer’s Tax Credit
Not many people know that as a first time home buyer, you may be eligible for up to a $750 tax credit on your 2017 income taxes! This article explores the major points of this claim, however, it’s always important to consult your tax professional for a definate answer these financial matters. Do you qualify for this first time home buyers credit? Find out below!
There are two criteria that must be true in order to be able to apply for the Home Buyer’s Tax Credit:
you or your spouse / common-law partner acquired a qualifying home
you didn’t live in a home that was owned by you, your spouse / common-law partner in the same year of purchase or within the 4 previous years (i.e. must be a first time home buyer.)
What Is Considered A Qualifying Home?
The home must be registered in your and/or your spouse’s or common-law partner’s name, and it must be within Canada. This includes existing homes as well as homes that are under construction. The following is a list of home types that qualify:
- single family homes (detached)
- semi detached houses
- mobile homes
- condo units
- apartments in duplexes, triplexes, fourplexes, or apartment buildings.
Persons With Disabilities
One doesn’t have to be a first time home buyer to claim this tax credit if you are eligible for the disability tax credit or if the acquisition of the home was for the benefit of a person related to you who is eligible for the disability tax credit.
Something to note: the purchase must be made in order to allow the person with the disability to live in a home that is either a) more accessible or b) better suits the needs of that person. You must intend to occupy the home, or the person with a disability occupies the home as a main residence no later than one year after its purchased.
Filing Your Tax Return
Always consult your tax professional when completing your tax return. It’s the best way to ensure nothing gets missed and that everything is in order with your finances.
On Line 369 of your Schedule 1, Federal Tax, enter $5,000. The total cannot exceed $5,000. You and your spouse / common-law partner can split the claim, but again that combined total cannot exceed $5,000.
If two people purchased a home together who are not spouses or common-law partners i.e. a mother and daughter, that combined amount claimed also cannot exceed $5,000.