Have you ever heard of the Home Buyer’s Tax Credit? Well, with tax season almost upon us, it’s a great time to find out what it is and whether you qualify for it if you bought a house in 2012.
As per the Canada Revenue Agency, “you can claim an amount of $5000 for the purchase of a qualifying home made in 2012, if BOTH of the following apply:
- You or your spouse or common-law partner acquired a qualifying home; and
- You did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer).”
So, what is a “qualifying home?”
- Single-family houses
- Semi-detached houses
- Mobile homes
- Condominium units
- Apartments in duplexes, triplexes, fourplexes, or apartment buildings
- Must be registered in you and/or your spouse or common-law partner’s name
- Must be located in Canada
- Includes existing homes and homes under construction
- You (or a disabled relative – see below) must move into the property no later than one year after it is purchased
It needs to be pointed out, as well, that there are two cases where you do not have to be a first-time home buyer to qualify:
- You are eligible for the disability amount; or
- You bought the property for a relative who will be living there and is eligible for the disability amount
How do I claim the tax amount?
- Enter $5000 on line 369 of your Schedule 1, “Federal Tax”
- Claim can be split between you and your spouse, but the combined total cannot exceed $5000
If you have any questions, please don’t hesitate to contact the Canada Revenue Agency or any income tax accountant – they should have all the up-to-date information for you!