You are likely starting to get your taxes sorted for 2009. If you bought a home for the first time in 2009, you are eligible for the First-Time Home Buyers’ Tax Credit. But before you add it to your tax returns, make sure you know all of the details about what it entails.
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In 2009, the First-Time Home Buyers’ Tax Credit (HBTC) was introduced, and it applies to any first-time home buyers who bought after January 27, 2009. It is a non-refundable tax credit of the lowest personal income tax rate (in 2009 that was 15%) that is applied to $5,000. This means that the highest credit you can get in 2009 is $750.
To claim the credit, you have to have bought a home after January 27, 2009 (and in 2009). You can claim the HBTC if neither you nor your partner (if you have a partner) lived in a home owned by either of you in the qualifying year or up to four years ago.
If you have a disability, the rules are more flexible. You do not need to be a first-time buyer; however, the home you have bought must improve your living situation through increased access, or a similarly improved environment. If someone has bought this house for you, or you have bought the house for someone with a disability, the house buyer can claim the credit.
And make sure you intend to occupy your home within a year of it being acquired.
The following types of homes are eligible for the credit: single-family homes, semi-detached, townhomes, mobile homes, apartments, and condominiums.
When entering the appropriate information on your tax forms, put $5,000 on line 369 of Schedule 1, Federal Tax. You can split the amount any way you’d like between you and your partner, but the total must not exceed $5,000. You do not need to include supporting documentation, but keep it safe in case Revenue Canada needs to see it.
The Revenue Canada website has more details in this FAQ. If you have any more questions, don’t hesitate to contact Revenue Canada, your accountant, or your realtor!
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
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