Did you buy a home last year? As Canadians start to file their 2022 taxes, make sure that you or your friends and family are taking advantage of the First Time Homebuyer tax credit available for qualified ‘first’ home purchases in 2022.
Even if you’ve owned a home before, you may be able to claim up to $10,000 for the purchase of a qualifying home in the year if all of the following apply:
- you (or your spouse or common-law partner) acquired a qualifying home,
- you did not live in another home owned by you (or your spouse or common-law partner) in 2022 or in any of the four prior years, and
- the home is registered in your and/or your spouse’s or common-law partner’s name.
This program is a non-refundable tax credit, so the rebate is equal to the base federal rate of 15% of the $10,000 claim, which works out to $1,500 in tax savings per qualified person. If you qualify, you will claim the credit on Line 31270 on your Tax Return.
If you didn’t buy a home last year but are planning on buying in 2023, there might be good news for you – the federal government has proposed to double this tax credit for the 2023 tax year!
If you have any questions about First Time Buyer benefits or mortgages in general, please give us a call or send us your question in the contact us form. We’re always happy to help!