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Jun 17, 2024 · First-time home buyers who acquire a qualifying home can claim a non-refundable tax credit of up to $750. The value of the HBTC is calculated by multiplying $5,000 by the lowest personal income tax rate (15% in 2022).
- Line 31270 – Home buyers' amount - Canada.ca
Completing your tax return. Enter $10,000 on line 31270 of...
- Are you a first-time home buyer? Do you know there are tax ...
First-Time Home Buyer’s Tax Credit (HBTC) The HBTC could...
- Line 31270 – Home buyers' amount - Canada.ca
- Overview
- What are these tax incentives for first-time home buyers you ask?
November 6, 2023
Ottawa, Ontario
Canada Revenue Agency
Entering the housing market is not easy these days and this is true in many communities across Canada. Prices are high, competition is stiff and market conditions seem to shift quickly. Many of us wonder how we can break into the market, and how we can stretch our dollars as far as possible.
November is Financial Literacy Month, a time for organizations across Canada to come together to talk about personal finances, and how to manage different aspects of them. When we think about how best to manage our money, and what we want to accomplish with it, purchasing a first home is often at the top of the list. Let’s face it, it is not always easy to know what mechanisms are out there that we can take advantage of. That is why, in November, various financial organizations are talking about available financial tools and resources to get the conversation going!
No surprise that, here at the Canada Revenue Agency (CRA), we want to talk to you about tax incentives. And this year, we particularly want to tell you about housing, and what is available to help. You might be considering whether you can buy your first house. It is possible you feel discouraged by this exercise. Maybe you are so close to breaking through but it hasn’t quite happened yet. You may qualify for benefits, credits, or tax incentives administered by the CRA for first-time homebuyers. It could be that these incentives are just what you need.
What’s new?
First Home Savings Account (FHSA) The FHSA is a registered account that could allow you to save for your first home with tax advantages. Contributions are generally tax deductible and withdrawals for the purpose of buying or building a qualifying home are tax-free. Existing measures for first-time home buyers Home Buyers’ Plan (HBP) The HBP could allow you to withdraw up to $35,000 from your registered retirement savings plan (RRSP) to buy or build a home for yourself or a related person with a disability. The withdrawal is tax-free if it is paid back within the required timeframe. Did you know: You could make withdraw from your FHSA and your RRSP under the HBP for the same home, as long as you meet all of the conditions at the time of each withdrawal. First-Time Home Buyer’s Tax Credit (HBTC) The HBTC could allow first-time home buyers who acquire a home to claim a non-refundable tax credit of up to $1,500. GST/HST New Housing Rebate The GST/HST rebate is available for new home purchases and could reduce upfront costs to help make homeownership more affordable. Other programs for first-time home buyers Aside from the incentives administered by the CRA, check out some of the other programs available for first-time home buyers. The Government of Canada offers a first-time home buyer incentive and new construction funding for Indigenous housing for on and off reserve communities in Canada. To sum up, here is what you need to know. The Government of Canada has benefits, credits, and incentives to support you as a first-time homebuyer. To access these and other tools and resources, make it a habit of filling your income tax return each year! Cheers to November and Financial Literacy Month! For more information on the CRA’s Financial Literacy Month initiatives, check out Canada.ca/housing-cra.
- Opening your FHSA. Review eligibility conditions and find out how you can open an FHSA.
- Participating in your FHSAs. How much you can contribute or transfer to your FHSAs, and how much unused FHSA participation room you can carry forward.
- Transfers into your FHSAs. How to make transfers into your FHSAs and how much can be transferred directly into your FHSAs.
- Withdrawals and transfers out of your FHSAs. Withdrawals from your FHSAs to buy a qualifying home or for other reasons, how to make transfers out of your FHSAs, and possible tax consequences.
Aug 19, 2024 · How To Apply for the First-Time Home Buyers’ Tax Credit. To claim the HBTC, simply enter $10,000 on line 31270 of your 2023 tax return. You and your spouse/common-law partner can split...
Apr 12, 2024 · The First-Time Home Buyers' Tax Credit lets you claim a $10,000 non-refundable income tax credit, which can result in a $1,500 tax rebate.
- CAN-legal@nerdwallet.com
Nov 2, 2023 · The Home Buyers’ Tax Credit (HBTC) is a non-refundable tax credit you can claim when you buy your first home. First-time home purchasers can get a tax rebate of up to $1,500. Disabled people who qualify for the Disability Tax Credit (DTC) might also be eligible for the credit even if they aren’t buying their first home.
People also ask
What is the first-time home buyers' tax credit?
What is the 2023 first-time home buyer tax credit?
Does the Canadian tax calculator include the first-time home buyers' tax credit?
What are the tax rules for first-time home buyers?
The Canadian Tax Calculator includes the first-time home buyers' tax credit. Tax Tip: If you owned a home that you did not live in (e.g., you rented it out), you may still qualify for the tax credit.
