First-time home buyers of 2016 take note: you are probably eligible for a $750 rebate on your 2016 income taxes!
The First-Time Home Buyers’ Tax Credit (HBTC) allows eligible first-time home buyers who purchased a home in 2016 to claim $5,000 on their federal income taxes for the purchase of the home. This works out to be a rebate of $750.
Claiming the HBTC is Easy
Enter $5,000 on line 369 of your Schedule 1, Federal Tax Return.
5 seconds for $750!
When more than one person is entitled to the amount (for example, when two people jointly buy a home), the total of all amounts claimed cannot exceed $5,000. In other words, you and your spouse or common-law partner can split it, but the maximum claimed between both returns is still just $5,000 total.
You do not need to send any supporting documentation with your tax return, but you do need to keep everything on file in case the CRA requests it at a later date.
To be eligible for this rebate:
- You or your spouse or common-law partner purchased a home in 2016
And, one of the three below:
- You did not live in another home owned by you or your spouse or common-law partner in 2016 or in any of the four preceding years, or
- You are eligible for the disability tax credit; or
- You acquired the home for the benefit of a related person who is eligible for the disability tax credit.
- You, or the related person with a disability, must intend to occupy the home as a principal place of residence no later than one year after it is purchased.
- The tax credit is available for existing homes and homes under construction.
- The home must be located in Canada, and must be registered in your and/or your spouse’s or common-law partner’s name.
- Almost all home types are eligible, with the exception of co-operative housing corporation which only gives purchasers the right to tenant their unit but not have an equity interest in the housing co-operative.
If you have any questions about the Home Buyers’ Tax Credit, please don’t hesitate to contact us. We’re available by phone or by email.