If you are a first time home buyer, you are eligible to apply for a $5,000 non-refundable claim, resulting in a $750 rebate. YES! That's $750 cash from the CRA.
What is the first time home buyer's tax credit? The tax credit was introduced in 2009 as part of "Canada's Economic Plan" to help relieve closing costs for first time home buyers. The tax credit is calculated by the home buyer's amount of $5,000 x 15% (lowest personal income tax rate for the year) = $750.
How to make the claim? This tax credit can be claimed on Schedule 1 on line 369 of your annual income tax return. This would be reported in the tax year you bought the home in. You would enter $5,000 on line 369 in order to obtain the full rebate of $750.
Who/What is eligible?
Property is located in Canada
Condos, town homes, single family detached homes, semi-detached homes, or duplexes
Property is intended to be owner-occupied within 1 year of purchase
You are a person with disability (does not need to be a first time home buyer), but intend to live in the property within 1 year for greater accessibility
You are a first time home buyer. FTHB is defined as: someone who has not lived in a property owned by yourself, spouse or common law in the last 4 years
What if one owner is a first time home buyer, and the other is not? Can I still apply?
Unfortunately, if the co-owner is not eligible to claim the first time home buyers tax credit, then the other co-owner, who is a first time home buyer, will not be able to obtain the rebate.
For any questions, please contact me at jessica.kuan@cleartrust.ca.
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