25 January 2012
New Home Buyers Save $750 Still in effect is the Federal Government First Time Home Buyer’s Tax credit. This is a non-refundable tax credit for first-time home buyers who acquire a qualifying home after January 27, 2009.
Beginning in 2009, a new line was incorporated in the personal income tax return form to allow the buyer to claim the Credit. The Credit is calculated by multiplying the lowest personal income tax rate for the year by $5,000 and is claimable for the taxation year in which the home is acquired. The maximum amount of the credit in 2012 will be $750.
A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, apartment buildings, all qualify. A share in a co-operative housing corporation that entitles the buyer to possess and provides an equity interest in a housing unit located in Canada also qualifies. A share that only provides a right to tenancy in the housing unit does not qualify.
An individual will be considered a first-time home buyer if neither the individual nor his or her spouse or common-law partner have owned a principal residence in the calendar year of the new home purchase or in any of the four preceding years. The buyer must intend to occupy the home as a principal place of residence no later then one year after buying it.
Any unused portion of an individuals Credit may be claimed by the buyer’s spouse or common-law partner. Where more then one buyer is entitled to the Credit (for example, where two friends jointly buy a home), the amount claimed cannot exceed the maximum amount of the Credit claimable by any one of those individuals.
The Credit will also be available for certain home purchases by or for the benefit of an individual eligible for the disability tax credit. If the buyer is a person with a disability or is buying a house for a related person with a disability, they do not have to be a first time home buyer. However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the person needs and care of that person.
For further information, please consult Canada Revenue Agency’s website at: http://www.cra-arc.gc.ca.gncy/odgt/2009/fghbtc-eng.html
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