The Canadian Economic Action Plan includes a First-Time Home Buyers' Tax Credit (HBTC).
When doing your taxes for 2014, check to see if the following criteria apply to you and make sure to make use of this credit:
You can claim an amount of $5,000 for the purchase of a qualifying home acquired in 2014, 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)
This means that essentially you can decrease your declared income by $5,000 allowing for reduction in the amount of taxes you owe. The Home Buyers' Tax Credit, at current taxation rates (15%) works out to a rebate of $750 for all first-time buyers. After you buy your first home, the credit must be claimed within the year of purchase and it is non-refundable.
Original article: www.eitanpinsky.ca