One of 3 main incentives available to Canadians that are buying a home for the first-time buyers OR anyone who has not owned a home in the previous 4 years, the home buyers tax credit is available along with the Home Buyers RRSP Plan and the Land Transfer Tax credit. Although it may not seem like a tremendous amount relative to a purchase price, the tax credit is probably the most straight forward of all the home buyer incentives.
How much is the first time buyers tax credit?
The amount you would receive if you qualify is $750 at tax time. More specifically, the tax credit is calculated as 15% of up to $5000 of the cost of buying a home.
How to Claim the First Time Buyers Tax Credit
When completing your taxes, use the $5000 amount on line 31270 of your tax return. Some tax software may simply ask if you bought a home in the year, and automatically calculate this amount. You may want to double-check on line 31270 for accuracy.
If you work with an account, ensure they have entered the credit. It never hurts to check.
If you have a spouse or common-law partner, you can split the tax credit between the two of you – as long as the total claim is not more than $5000.
Connect with us at Altrua for more information on home buyer incentives and to have any other questions answered.