Did you know that you may be able to claim the First Time Home Buyers’ Tax Credit (HBTC) even if you have purchased a home in the past?
According to the Canada Revenue Agency, you are a “first-time buyer” if 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.
You also do not have to be a first-time home buyer if you are eligible for the disability amount, or if you acquired the home for the benefit of a related person who is eligible for the disability amount.
Watch the video below to find out more about the HBTC non-refundable tax credit and if you’re eligible to claim it.
What is the home buyers’ tax credit (HBTC)?
For 2009 and subsequent years, the HBTC is a non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., generally means that the closing is after this date).
How is the HBTC calculated?
The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15%) by $5,000 (5000 x 0.15 =$750)