March 24, 2011

First Home Buyer Tax Credit

The First-Time Home Buyers’ Tax Credit (HBTC) was implemented by the federal government to assist with the associated costs of purchasing a home. Legal fees, disbursements, land transfer taxes – these are extra costs, which first time home buyers may not have calculated into their savings when planning for a down payment.

Perhaps you have heard about this credit but did not consider claiming it back in the 2009 tax year (the first year in which the credit could be applied for) because you assumed you weren’t eligible? Well, just who is?

Count yourself eligible 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”.

Persons with a disability (or those who have purchased a home for a disabled relative) can apply for this credit without having to be a first-time home buyer (however the home must be have been acquired due its greater-accessibly).

There’s still time before the tax deadline so get more info about how you can save money – visit the Department of Finance Canada website and the Canada Revenue Agency website.