Tax tips for new homeowners

If you’re house hunting, or you’ve recently snagged your dream home, take advantage of these helpful programs from CRA.

First-time home buyers’ credit

Claim the first-time home buyers’ tax credit on your income tax return. It’s a non-refundable tax credit of up to $750. To qualify, you or your spouse or common-law partner must have bought the home, and you can’t have lived in another home owned by you or your partner in the last four years.

If you also qualify for the disability tax credit, you may qualify for the home buyers’ credit even if it’s not your first home purchase.

Home Buyers’ Plan If you’re about to make a purchase, consider CRA’s Home Buyers’ Plan. It allows you to take money out of your RRSP to help buy your home, or a home for a related person with a disability.

You can withdraw up to $25,000, and you’ll have up to 15 years to replace the money in the account. You have to repay a certain amount every year. If you don’t, any missed payments will be included in your income for that year and you’ll have to pay tax on it.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.