Tax season seems to have snuck up on us again. With it being tax season, everyone wants to try and get as many breaks on our taxes as we can. There are a lot of things you can claim or tax credits that you can get that you might not know about. Here at Team Jardine, we are experts in mortgages, home owning, and everything that surrounds these fields; including information about tax credits concerning your mortgage. One of the tax credits you can get is the First Time Home Buyers’ Tax Credit which is available to any new homeowners after 2009.
This tax credit is to help you purchase your very first home. The HBTC (Home Buyers’ Tax Credit) helps with the costs associated with the purchase of a home, which could be legal fees, disbursements and land transfer taxes, which can be a particular burden for first-time home buyers, who might be struggling to save for a down payment. The $5,000 non-refundable HBTC amount applies to qualifying homes acquired after January 27, 2009, and provides up to $750 in federal tax relief. Now we know this sounds too good to be true, so let us tell you a little bit more about it to see if this information can help you.
Who is considered a first time home buyer?
A person is considered a first-time home buyer if he/she or their spouse or common-law partner owned and lived in another home in the year of the home purchase or in any of four calendar years before.
Special rules also apply to a home that needs to be accessible for a person with disabilities who are eligible for the Disability Tax Credit. This seems like a lot of information already but we can help you with any questions you may have.
Who will benefit from the HBTC?
Have you purchased a home before? First-time home buyers who are purchasing a home may claim the HBTC on their income tax returns, starting with the 2009 taxation year. So anyone after 2009 who is a first time home buyer will be able to take part in this tax credit. Certain rules and restrictions apply, but we are happy to help define these if you have any concerns.
Initiative Update HBTC received Royal Assent on December 15, 2009. Canadians purchasing their first home after January 27, 2009, can claim the HBTC on their income tax return for the year in which they make their purchase. We know that reading this you may have a lot of questions so if you would like more information on this you can contact the Department of Finance Canada website or the Canada Revenue Agency website.
We know that buying your first home can come with a lot of questions, a lot of “what if’s”, and a lot of work. We want to help you with any and all questions that you have. Give a call to Team Jardine and we can help you with any questions you might have and thank you for taking the time to read.