First-Time Home Buyers’ Tax Credit
The government of Canada, as a part of its 2009 budget came up with the First Time Home Buyers’ Tax Credit (HBTC). It is an initiative to financially assist first time home buyers by providing them with a non-refundable income tax credit for an amount up to $5,000.
According to the information on the Canada Revenue Agency website, you qualify to apply for 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.”
- The date of closing of your purchase must be after January 27, 2009.
- Canada Revenue Agency defines a “qualifying home” as “a housing unit located in Canada acquired after January 27, 2009.”
- You can apply for HBTC in the taxation year in which the home is acquired.
- You must occupy the property no later than a year from the date of closing the purchase.
- If your intention is to be a tenant and not a permanent owner then you do not qualify for HBTC.
For further information on HBTC visit the Canada Revenue Agency’s website at www.cra-arc.gc.ca.
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