|This federal bill was sanctioned on December 15, 2009. Part of Canada’s economic
action plan, the Home Buyer’s tax credit (HBTC) allows first-time homebuyers
to claim a non-refundable tax credit of up to $750 for the purchase of a qualifying
home acquired after January 27, 2009 (closing after this date).
The HBTC’s goal is to help home owners to bear the costs associated with the
purchase of a property, such as legal fees and welcome taxes, which can
represent a heavy burden for the new owners.
The HBTC is calculated by multiplying the lowest personal income tax rate
for the year by 5 000$. However, if the total of your non-refundable tax
credits is more than your federal income tax, you will not receive a refund
for the HBTC.
To qualify for this credit, you must complete section 369 of Schedule 1,
Federal Tax, of your personal income tax statement. You do not have to
submit supporting documents your purchase transaction with your income
tax and benefit return. However, you have to make sure that this information
is available if the Canada Revenue Agency asks for it.
In addition, this credit can be claimed by either of the spouses or can be shared
as long as the total of the combined claims do not exceed $750.
You will be entitled to the HBTC if:
- you or your spouse or common-law partner acquired aqualifying home; and 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.
Any housing unit located in Canada acquired after January 27, 2009:
- Single-family homes
- Semi-detached homes
- Mobile homes
- Condominium units
- Apartments in duplexes, triplexes, fourplexes or apartment buildings
A share in a co operative housing corporation that entitles you to possess, and
gives you an equity interest in, a housing unit located in Canada also qualifies.
However, a share that only provides you with a right to tenancy in the housing
unit does not qualify.
Also, you must intend to occupy the home or you must intend that a related
person with a disability occupy the home as a principal place of residence no
later than one year after it is acquired.
The home must be registered in your or your spouse’s or common-law
partner’s name in accordance with the applicable land registration system.
Note that the regulation of the Home Buyer’s Tax Credit (HBTC) is similar
to the Home Buyer’s Plan’s (HBP), but not related. Eligibility for the HBTC
does not affect participation in the HBP. You can therefore make concurrent
requests for the two programs.
Exception: disabled person
Individuals with disabilities benefit from a wider application of the HBTC.
In the case where the buyer suffers from disabilities or if he acquires a property
for a disabled loved one, the housing unit does not have to be his first purchase.
However, the acquisition must be made to allow the person eligible for the disability
allotment to live in a home that is more accessible or better suited to their needs.
For the purposes of the home buyers’ credit, a person with a disability is an
individual who is eligible to claim a disability allotment for the year in which
the home is acquired, or would be eligible to claim a disability allotment, if we
ignore that costs for attendant care or care in a nursing home were claimed as
medical expenses on lines 330 or 331.
For more information, go to www.cra.gc.ca/hbtc or call 1-800-959-8281