First TIme Home Buyers
The 'Canada's Economic Action Plan' introduces The Home Buyers' Tax Credit (HBTC) to help out first-time home buyers purchase their home, by alleviating the closing costs incurred with the purchase of a home, such as legal fees, disbursements and LLT’s, all of which are cumbersome for a first-time homebuyer.
Using current taxation rates, it functions as a rebate -a federal tax relief of up to $750 for all first-time home buyers. After closing the purchase, the buyer must then claim the credits within the year of purchase and is non-refundable. Moreover, if the purchase is a partnership with a spouse or other partner, combined claims for the same home cannot not exceed $750. To claim, the taxpayer can simply include it on his personal tax return under line 369.
A home eligible for Home Buyers' Tax Credit is considered a residential structure located within Canada; either existing or newly-built; can be a basic house structure, townhouse or strata unit. Ownership can be sole or a partnership with a spouse, common-law partner or a co-operative housing in which you have to show proof of ownership. The owners intending to avail of HBTC much indicate the home as his primary residence within one year of purchase.
To personally be eligible for the First-time Home Buyers' Tax Credit, you must also meet the following requirements:
You or your spouse must purchase a qualifying home
The home must be registered in either your name or your spouse's name
You has not owned a home in the last four years
You has never lived in a home owned by your spouse in the last four years
You must be ready to present documents supporting the purchase of the home
HBTC for Persons with DisabilitiesSpecial exemption is given to people with disabilities even if they have not met the first-time homebuyer requirement is not met. If the home is purchased for the purpose of caring for the individual needs or is better suited for a person with disability, then he could claim for a HTBC, even if the owner is not a first-time homebuyer.