The First-Time Home Buyers Tax Credit (HBTC) is a non-refundable tax credit for eligible home buyers who buy a qualifying home after January 27, 2009. If you have a disability or are buying a home for a relative with a disability, you do not have to be a first-time home buyer.
The value of the Home Buyers Tax Credit is based on $5000 multiplied by the lowest federal income tax rate for the year. In 2011 the lowest income tax rate is 15 percent, so the value of the HBTC would be $750.
You are eligible if you buy a qualifying home and neither you nor your spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.
If you have a disability, or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to qualify for the Home Buyers Tax Credit. However, the home must be bought to be more accessible or to provide a better environment for the needs and care of the person with the disability.
To qualify for the First-Time Home Buyers Tax Credit, a home must be a housing unit located in Canada, including mobile homes, condominiums and apartments. Shares in coop housing that provide an equity stake also qualify.
Also, you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.
If you both qualify, you and your spouse or a friend can share the tax credit, but the total can not be more than the total allowable tax credit (e.g. $750 for 2011).
You claim the First-Time Home Buyers Tax Credit when you file your Canadian income tax return, beginning with the 2009 income tax year.
If you're considering becoming a first-time home buyer, you might also be interested in the Home Buyers Plan.
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