3 important homeowner tax credits
(NC) Buying your first home or improving your families' home can be a significant financial investment; CGA Ontario notes three valuable tax tips for homeowners:
First-time home buyers' tax credit (HBTC)
For individuals who are new to home ownership there is a federal non-refundable first-time home buyers' tax credit (HBTC) on qualifying homes. They are eligible for a credit of up to 15 per cent on $5,000, or $750.
To participate, prospective homebuyers (or their spouse/common-law partner) cannot have owned and lived in another home in the calendar year they make the purchase, or the four years previous to that. If they purchased a home in 2013, for example, they must not have owned and lived in a home after 2008.
Land transfer tax refund program
First-time purchasers of a newly constructed home and first-time homebuyers of a resale home (that is to be used as a principal residence), are eligible for a provincial-government refund on up to $2,000 of the land-transfer tax (LTT) paid for that home.
Healthy homes renovation tax credit
The refundable Healthy Homes Renovation Tax Credit is designed to assist senior citizens with the cost of permanent home modifications required to improve accessibility to, or assist with mobility within, their home.
This credit is calculated as 15 per cent on up to $10,000, or $1,500, to cover eligible annual expenses (e.g., wheelchair ramps, widening passage doors, hand rails in corridors), among other qualifying expenditures. Family members who live with an elderly relative may claim this expense on behalf of the household.
To learn more about the tax credits and deductions available to homeowners, take a look at the Personal Tax Planning Guide published by CGA Ontario at. www.cga-ontario.org/Publications.aspx
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