Revenue Canada Gives Back!

Yes, you read that right! Revenue Canada is giving back. Well, Okay, they are giving back in the only way they know how: by giving tax credits. I’m sure they think that still counts as “giving.”

At any rate, anytime Revenue Canada is giving, you should be making it your number one priority to be taking, because if the tables were turned…well, I won’t finish that sentence, but I think you get the picture. Now get a pen and write this down:

“If I go out and buy my first house (because I’m mature and responsible like that) I will get money back from Uncle Sam Canuck.”

How much money will you get back from our frosty tax-collecting friend, Uncle Canuck? Well, it could be as much as $750.00!

I would like to do a quick review of what you can get with $750.00
1)    A new 32" Class LED HDTV (31.5" diagonal)
2)    A 64 GB Ipad
3)    A 64 GB Blackberry Playbook
4)    You could pay off the taxes you didn’t pay last year!

Your options are limitless, really.

Okay, but in all seriousness, let’s talk about how you’re going to get your first-time homebuyers tax credit.
Who is Eligible for The First Time Homebuyers tax credit?

You will qualify for the HBTC if
•         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.

If you are a person with a disability or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to get the HBTC. 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 personal needs and care of that person.

For the purposes of the HBTC, a person with a disability is an individual who is eligible to claim a disability amount for the year in which the home is acquired, or would be eligible to claim a disability amount if we ignore that costs for attendant care or care in a nursing home were claimed as medical expenses on lines 330 or 331.

What is a qualifying home?

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, mobile homes, condominium units, as well as apartments in duplexes, triplexes, fourplexes, and apartment buildings all qualify.

A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after it is acquired.

Important things to remember

The home must be registered in your or your spouse's or common-law partner's name in accordance with the applicable land registration system.

You do not have to submit documents supporting your purchase transaction with your income tax and benefit return. However, you have to make sure that this information is available if Canada Revenue Agency asks for it.

So what is holding you back? Owning a home is always a great investment, and you’re always going to need a place to live, so jump in now while the market is on the softer side!