The first-time home buyers tax credit was started as a part of ‘Canadas Economic Action Plan’ to help Canadians purchase their first home. It can help pay for certain closing costs such as legal expenses, transfer taxes, and inspections.
The first-time home buyers tax credit is:
- $750 for all first-time homebuyers
- Only claimable within the year the home was purchased
- Claimed under your personal taxes (under line 362)
How to Qualify?
The requirements for your home are as follows:
- Be within Canada
- Be an existing or new home
- Be a single, semi, townhouse, mobile home, condo, or apartment
- Can include a share in a co-operative housing corporation that gives you possession of the home
- You must intend to occupy the home within one year of purchase
The requirements for the purchaser(s) are as follows:
- You or your spouse must purchase a qualifying home
- The home must be registered in either your name or your spouse’s name
- You cannot have owned a home in the previous four years
- You cannot have lived in a home owned by your spouse in the previous four years
- You must present documents supporting the purchase of the home
Homebuyers Tax Credit for People with Disabilities
A person with a disability can claim the first-time homebuyers tax credit even without being a first-time homebuyer. In order to qualify the person must be eligible to claim a disability amount on their tax return during the year the home was purchased. The person must occupy the home within 1 year of purchase and the home should accommodate to the persons disability.