First Time Home Buyers Tax Credit
Did you know that the Government of Canada Revenue Agency has a special plan for first time home buyers? You heard right, the Government of Canada provides a First Time Home Buyers Tax Credit for those who purchased a home in 2012.
How does the first time home buyers tax credit work you ask? Well, the Canada Revenue Agency CRA states that you can claim an amount of $5,000 for the purchase of a qualifying home made in 2012, if both of the following apply:
- 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 (first-time home buyer)
A qualifying home must be registered in your and/or your spouse’s or common-law partner’s name in accordance with the applicable land registration system, and must be located in Canada. It includes existing homes and homes under construction.
The following are considered qualifying homes:
- single-family houses;
- semi-detached houses;
- mobile homes;
- condominium units; and
- apartments in duplexes, triplexes, fourplexes, or apartment buildings.
A share in a co-operative housing corporation that entitles you to own and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only gives you the right to tenancy in the housing unit does not qualify.
How to claim the home buyers’ amount
Enter $5,000 on line 369 of your Schedule 1, Federal Tax.
The claim can be split between you and your spouse or common-law partner, but the combined total cannot exceed $5,000.
When more than one individual is entitled to the amount (for example, when two people jointly buy a home), the total of all amounts claimed cannot exceed $5,000.
Further information can be found at the Government of Canada’s web site by clicking ‘HERE‘.