Home buyer’s credit allows buyers to claim $5,000 if:
▪ they purchase a qualifying home; and
▪ the buyer and his/her spouse or common law partner didn’t live in a house owned by them in the year of acquisition and in the previous four years.
For a home to be qualified, it must meet the following attributes:
▪ it must be registered in buyer’s or his/her spouse/common law partner’s name;
▪ the home must be located in Canada;
▪ the home is one of the following: single-family house, semi-detached house, townhouse, mobile home, condominium unit and apartments in duplexes, triplexes, fourplexes, or apartment buildings.
The credit is 15% of $5,000, which amounts to $750. It is a non-refundable tax credit. A non-refundable tax credit reduces the amount of taxes payable and therefore could potentially result in a refund if taxes paid were more than the taxes payable.
The amount of the claim can be shared among buyers; however the combined claim cannot exceed $5,000. The claim is entered on line 369 of Schedule 1, Federal Tax.
Persons with disabilities do not have to be first-time buyers if they are eligible to claim disability tax credit or if the buyer acquired the home for the benefit of a related person who is eligible for the disability tax credit.
For more information, please visit CRA’s website
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