The Home Buyers’ Amount allows you to claim up to $5,000 when purchasing a qualifying home. This translates to a federal non-refundable tax credit of up to $750 on qualifying home purchases.
The Canada Revenue Agency defines a qualifying home as a housing unit that is located in Canada. It is not limited just to existing resale homes, but also includes properties under construction. It can be a house, a condo or apartment unit, a townhouse, a duplex, or a mobile home. A share in a co-operative housing is also acceptable only if the share enables you the right to own and offers you an equity interest.
The rules governing the Home Buyers’ Amount are straightforward. Much like the Home Buyer’s Plan, in order to qualify you must meet some basic criteria. You and anyone you purchase the home with, whether they are a spouse, a common-law partner, or a friend:
- must have purchased a qualifying home;
- must have registered the home in your names with the applicable land title authorities and;
- must not have owned and lived in another home owned by any parties involved in the year of acquisition or in any of the four preceding years;
If you are a person with a disability and are eligible to claim the Disability Tax Credit (DTC), you do not need to be a first time home buyer. Nor do you if you are a relative of a DTC claimant. This is contingent on the home being purchased to allow the disabled relative to live in an environment better suited to their care and needs. Regardless of the situation, the home must be occupied as a principal residence no later than one year after its purchase.
If you have any questions or need more information on the Home Buyers’ Amount, feel free to contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.