First Time Home Buyers Tax Credit
Another incentive was announced for First-Time Home Buyer’s with the release of The Government of Canada’s ‘Economic Action Plan’ 2009. The First-Time Home Buyer’s Tax Credit (HBTC) allows qualifying individuals that purchase a qualifying home after January 27, 2009 to claim a credit when filing their personal income tax return beginning with the 2009 tax year. The new non-refundable tax credit is based on an amount of $5000.00. It is multiplied by the lowest personal income tax rate for the year. Calculated as, for 2009, 15% x $5000.00, the credit allotted will be $750.00.
How do you qualify?
An individual/individual’s spouse or common-law partner must not have owned another home in the year of the purchase or 4 years preceding.
If you are a person with a disability or purchasing a home for a person with a disability, you do not have to be a first time home buyer. This purchase must be resided by the disabled individual and be a better suited home for that individual’s needs.
An individual/individual’s spouse or common-law partner must purchase a qualifying home defined as:
- A housing unit located in Canada, existing or new
- SFD, semi-detached homes/townhomes/duplexes/triplexes/fourplexes, apartments and/or condo units all qualify
- A share in a co-operative housing corp. that entitles you to possession and/or equity interest also qualifies, provided it is located in Canada
- A share that provides you with only the right to tenancy does not qualify
One or more individuals may claim the credit provided they meet the requirements for the HBTC and the total of all claims does not exceed $750.00.
For more information see the Canada Revenue Agency’s website at www.cra.gc.ca
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