First Time Home Buyer’s Tax Credit
Firstly, I would like to thank you all for the overwhelming response that you have given to my Property Bulletin. In my forthcoming property bulletins, I will be sharing with my readers about the different kinds of benefits that first time home buyers can avail. I sincerely hope that these articles will surely help the first time home buyers know more about what benefits they can avail and save their hard earned money. In today’s edition, I will be discussing about First Time Home Buyer’s Credit.
First Time Home Buyer’s Tax Credit
The federal government for the first time has introduced First Time Home Buyers Tax Credit, a tax incentive that will help first time home buyers buy their first home.
This tax incentive helps first time home buyers towards costs associated with legal fees, land transfers and disbursements which are heavy burden on any first time home buyer. The $5000 non-refundable HBTC amount applies to qualifying first time home bought after January 27, 2009 and provides federal tax relief up to $750.
An individual is considered a first time home buyer if the individual or his/her spouse or common law partner have never acquired any house in the current calendar year or in four preceding calendar years.
A qualifying home is considered to a unit located in Canada which the individual or spouse or common law partner intends to occupy as their primary place of residence no later than one year after its acquisition.
When two or more eligible individuals buy a home jointly, the credit may be shared by both, but total credit amount cannot be more than $5000.
The documentation supporting the purchase of property should be available upon the request of Canada Revenue Agency. The claimants should make sure that all the condition for claiming the benefit is truly met.
First time home buyers can claim the HBTC benefit starting 2009 taxation year.
For more information on this, you can call me at 416-948-4757 or visit my website at kbtherealtor.com