By: Adrian Gennuso

Tags: homes, first time home buyer, tax credits, income tax, durham

 

It's getting to be tax time again!
 

If you were a first time home buyer last year, you may want to make sure that you know about line 359 on your income tax return.
Its called the First Time Home Buyer’s Tax Credit, and it allows for a tax credit of up to 15% of closing costs to a maximum of $5,000.00 so effectively $750.
Where more than one person purchases the $750 is shared. It seems that closing costs include CMHC fees so most people would qualify for the maximum.
It's the broader Federal government definition of first time buyer, and the buyer or spouse must intend to occupy within a year of acquisition as principal residence to qualify for the credit.
If  you were unaware of this credit and have not claimed the credit in previous years, my accountant says that it is possible to go back four years to claim the credit by filing a T1 Adjustment for the year in question.

 

Hope this will prove helpful for many!

 

 

 

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