First-Time Home Buyers' Tax Credit (HBTC)It's that time of year again - tax time. And although that's not a very sexy topic for most of us, recent first time buyers have a nice little bonus to look forward to.
If you purchased your first home last year, you may be entitiled First-Time Home Buyers’ Tax Credit, which can save you $750, when filing your 2015 income taxes. Full details below
What is the Home Buyers' Tax Credit (HBTC)?
The HBTC is a non-refundable federal tax credit, based on an amount of $5,000, for first time home buyers that acquired a qualifying home in 2015.
How is the new HBTC calculated?
The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2015) by $5,000. For 2015, the credit should be $750.
Who is eligible for the HBTC?
You can qualify if:
you or your spouse or common-law partner acquired a qualifying 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.
How do I claim the HBTC?
Beginning with the 2009 personal income tax return, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.
Do I have to submit any supporting documents with my income tax return?
No. However, you must ensure that this information is available, should it be requested by the Canada Revenue Agency (CRA)
For complete information on the Home Buyers’ Tax Credit (HBTC) visit the CRA's website >>