The idea of filing taxes can often bog us down. But what about the important tax credits that may be beneficial to you? For example, the First Time Home Buyer Tax Credit.

The First Time Home Buyer Tax Credit (HBTC) was introduced with the intention of assisting Canadians in the purchase of their first home. This tax credit will assist first-time home buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes. The HBTC will provide up to $750 in a Tax Credit!

You must meet both of these criteria in order to qualify for the Home Buyers’ Tax Credit:

  1. You or your spouse or common-law partner purchased a qualifying home.
  2. You are a first-time homebuyer, which means that you did not live in another home owned by you or your spouse or common-law partner in the year of the acquisition or in any of the four preceding years.

Now how can you be sure your home qualifies?

A qualifying home is described as almost any type of home located in Canada and registered in your or your spouse or common-law partner’s name. This includes new builds and existing homes.

The following are considered to be qualifying homes, in accordance with the CRA:

  • Single-family houses
  • Semi-detached houses
  • Townhouses
  • Mobile homes
  • Condominium units
  • Apartments in duplexes, triplexes, fourplexes, or apartment buildings

If you have any questions about the HBTC and/ or whether or not you qualify, don’t hesitate to reach out to our team for more information.

Reference:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-369-home-buyers-amount.html

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