First-Time Home Buyers' Tax Credit
An important piece of information about home purchasing ... Fill out one box on your tax forms and get a $750 tax rebate!!
The Economic Action Plan includes a First-Time Home Buyers’ Tax Credit (HBTC) to help?
The HBTC assists first-time home buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes, which are a particular burden for first-time home buyers, who must also save for a down payment.
When doing your taxes for 2014, check to see if the following criteria apply to you and make sure to make use of this credit:
You can claim an amount of $5,000 for the purchase of a qualifying home acquired in 2014, 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).
This means that essentially you can decrease your declared income by $5,000 allowing for reduction in the amount of taxes you owe. The Home Buyers' Tax Credit, at current taxation rates (15%), works out to a rebate of $750 for all first-time buyers. After you buy your first home, the credit must be claimed within the year of purchase and it is non-refundable.