Are you a first time home buyer? Do you know about the first time home buyer tax credit? In 2009 the federal government of Canada has introduced a taxable credit for when you are ready to purchase your first property.
The credit is a non refundable tax credit you can claim if you purchase a qualified home that can reduce your federal income tax that you pay. This is reported on line 369 of your personal income tax return, incorporated into Schedule 1, Federal Tax.
A qualified home is a property located in Canada that is new or already built. This can be a detached, semi detached, townhouse, apartment, condo or mobile home. If two people are purchasing the property (ex. husband and wife) both can apply for the credit. However, the total of your combined claims cannot exceed $750.00.
The HBTC is calculated by multiplying the lowest personal income rate for the year by $5,000. (Ex for 2013 it is 15% X $5,000 = $750.00 credit) If your tax income is less than home buyer credit, you will not receive a refund.
Who qualifies for this credit? A first time home buyer is someone who has not owned a home in the year of purchase or in the past 4 years. People who are disabled or if you are purchasing a home for a disabled person would also qualify for this credit.
For more information on this credit, visit the links below.