|
Your Hamilton Area Real Estate 'Blog By Jeff Bonner, Sales Representative with Jag Realty Inc, Brokerage KIRH Home | JeffSellsHomes.ca
Real estate tax tip for first time home buyers
If you bought a home in 2011, you may be entitled to a tax credit known as the Home Buyers' Amount, which is a non-refundable credit of $5000. This translates into a $750 reduction in your taxes owing.What may surprise you, though, is that the definition of "first time home buyer" does not automatically disqualify you for the credit if you've owned a home some time in the past. For the purpose of the Home Buyers' Amount, you are considered a first time buyer as long as you haven't owned and lived in another home in the year of purchase or any of the four previous years. Further, even this five-year rule is waived for someone who qualifies for a disability tax credit if the home is acquired to allow them to live in a more accessible dwelling. As a final point, the Home Buyers' Amount can also be split between a couple who buy a home together, as long as the total credit does not exceed $5000. So make sure whoever is doing your income tax return is aware that you bought your first home (or first home in a while) in 2011 so they can qualify you and take advantage of the Home Buyers' Amount if you are eligible.. Why pay more tax than you have to? If you have any questions about the home-buying process and various programs available to make it easier, please call me at 905-512-4069 or email Jeff@JeffSellsHomes.ca
Please Note: Every situation is different. This article should not be relied on in place of expert tax advice, and you should consult with your professional tax preparer.
|