First Time Home Buyers Tax Credit
March 2, 2016 | Posted by: Laurie Anne Faulkner
What is the home buyers' tax credit (HBTC)?
Don't leave money on the table at Tax time if you bought your 1st home last year!
You may be able to take advantage of the Home Buyers Tax Credit (HBTC) when you file your tax return.
The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first-time homebuyers who must pay these costs, as well as save money for a down payment. To assist first-time homebuyers with the costs associated with the purchase of a home, the Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009.
$750 for 2015 first-time buyers.
The $5,000 non-refundable HBTC provides up to $750 in federal tax relief. You qualify if neither you nor your spouse (or common-law partner) have owned and lived in another home for the past five years.
How is the new HBTC calculated?
The HBTC is calculated by multiplying the lowest personal income tax rate for the year by $5,000.
For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009 and can be claimed on thier tax return.
You will qualify for the HBTC if:
- 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.
For more information, visit the Action Plan website at www.actionplan.gc.ca/en/initiative/first-time-home-buyers-tax-credit.