Tax Rebates for Homeowners

Tax Rebates for Homeowners

It’s that time of the year again when we are collecting our tax receipts to file our Personal taxes and hopefully get a nice cheque back from CRA!

First-Time Home Buyers’ Tax Credit (HBTC) : If you purchased a home in 2018, you are probably eligible for a $750 rebate on your 2018 income taxes!  The First-Time Home Buyers’ Tax Credit allows eligible first-time home buyers who purchase a home in 2018, to claim $5,000 on their federal income taxes for the purchase of the home.  To be eligible it must be registered in your name or your spouse’s.  You and your spouse cannot have owned a home in the previous four years.  To clarify, if you owned a home 5 or 6 years ago, you would qualify as a First Time Homebuyer, because of the amount of time that you have been renting.  Homes include mobile homes, modular and floating homes.

If you qualify, enter $5,000 on line 369 of your Schedule 1, Federal Tax Return.

GST/HST New Housing Rebate:

  • This rebate is for those people who built a home during 2018 and they can apply for a tax rebate.  However, they can also qualify if they owned a home and did major renovations, such as adding an addition to the home.
  • Granny-Suites – you may also qualify for this rebate if you converted a non-residential building into a residential property.  That means that if you turned your garage or barn into a granny suite for you  or a family member, you can claim the rebate.
  • Co-op Shares – If you purchased shares in a housing co-op for you or a relative to live in as your primary residence, the rebate can also be claimed.

Land Transfer Tax Rebate:  If you live in Ontario, BC or PEI, you may also qualify for a First Time Home buyers rebate on the land transfer tax and for the city of Toronto you can apply for a $3,725 municipal land transfer tax rebate.

Put it all together and there’s a lot of money available for First Time Home Buyers, if they know they qualify.  Be sure to include these if you are eligible, when you file your 2018 income tax documents.

Original article: www.dominionlending.ca/news