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First time property buyer in Canada - Tax exemption query

First time property buyer in Canada - Tax exemption query

Old Mar 21st 2021, 8:51 pm
  #1  
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Default First time property buyer in Canada - Tax exemption query

I have a property I rent out in the UK and this is being reported annually in my Canadian tax return. I am planning on purchasing my first home in Canada and wondered if I will be able to obtain the first time buyer tax exemption or if my overseas property precludes me from this? I am living in lower mainland, British Columbia.
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Old Mar 21st 2021, 9:19 pm
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Default Re: First time property buyer in Canada - Tax exemption query

Originally Posted by UKexpat82 View Post
I have a property I rent out in the UK and this is being reported annually in my Canadian tax return. I am planning on purchasing my first home in Canada and wondered if I will be able to obtain the first time buyer tax exemption or if my overseas property precludes me from this? I am living in lower mainland, British Columbia.
According to this link no.

"Eligibility:
  • You’re a citizen or permanent resident living in British Columbia for at least 12 consecutive months immediately before the date the property is registered, or you have filed a minimum of two income tax returns as a resident of B.C. in the previous six years.
  • The property is located in British Columbia.
  • You’ll use the property as your primary residence.
  • You must have never owned an interest in a principal residence anywhere in the world and have never received a tax exemption or refund as a first-time home buyer...."
https://mortgagepal.ca/first-time-ho...rnment-grants/

However, I would ask a tax expert to make sure.
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Old Mar 21st 2021, 9:26 pm
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Default Re: First time property buyer in Canada - Tax exemption query

thanks for the link!
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Old Mar 21st 2021, 10:47 pm
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Default Re: First time property buyer in Canada - Tax exemption query

Originally Posted by UKexpat82 View Post
I have a property I rent out in the UK and this is being reported annually in my Canadian tax return. I am planning on purchasing my first home in Canada and wondered if I will be able to obtain the first time buyer tax exemption or if my overseas property precludes me from this? I am living in lower mainland, British Columbia.
Not if you have lived in owned property during the last 4 years either in the UK or elsewhere.. there are lots of different 'incentives / plans - check the 1st link

https://www.cmhc-schl.gc.ca/en/buyin...ort-homebuyers
https://www.cmhc-schl.gc.ca/en/nhs/f...uyer-incentive

Line 31270 – Home buyers' amount

Note: Line 31270 was line 369 before tax year 2019.

You can claim $5,000 for the purchase of a qualifying home in the year if both 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 the year of acquisition or in any of the four preceding years (first-time home buyer)
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Old Mar 22nd 2021, 4:34 pm
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Default Re: First time property buyer in Canada - Tax exemption query

The tax exemption tops out at $500k anyway and depending on where you are in the LM, your budget may be well above that.

In addition to Home Buyers Amount, you can also use the Home Buyers Plan which allows you (and your partner/spouse if any) to take up to $35k each out of your RRSP to put towards downpayment. The criteria to qualify as first time buyer is the same.

https://www.canada.ca/en/revenue-age...yers-plan.html
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