First Time Home Buyers’ Tax Credit
February 12th, 2016 by Robert Smith
The First Time Home Buyers’ Tax Credit (HBTC) was implemented in the 2009 Federal budget. HBTC allows for first time home buyers to save up to $750 in federal tax relief. That amount comes from a non-refundable tax credit based on an amount of $5,000, the credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired. If the lowest personal income tax rate is currently 15%, the total savings to the First Time Home Buyers would be $750.00.
An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.
A qualifying home is one that is currently eligible for the Home Buyers’ Plan. To be eligible, the individual or individual’s spouse or common-law partner must intend to occupy the residence as the principal place of residence not later than one year after its acquisition. Any unused portion of an individual’s HBTC may be claimed by the individual’s spouse or common-law partner.
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