Home Buyers Tax Credit
Mar 1st 2022, 9:22 am
#1
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Joined: Dec 2014
Posts: 26
Home Buyers Tax Credit
Hi
Wanted to check my understanding of the Home Buyers Tax Credit for first-time buyers in Canada. We sold our UK home last year and purchased here in Canada - we last lived in the home in 2015 and have been renting since.
According to the federal guidance (below) we should be eligible as we have not lived in the UK house at any time in the preceding four years.
Am I missing anything?
Wanted to check my understanding of the Home Buyers Tax Credit for first-time buyers in Canada. We sold our UK home last year and purchased here in Canada - we last lived in the home in 2015 and have been renting since.
According to the federal guidance (below) we should be eligible as we have not lived in the UK house at any time in the preceding four years.
Am I missing anything?
You can claim up to $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)
Mar 1st 2022, 2:40 pm
#2
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Joined: Mar 2005
Location: Ontario
Posts: 40,018
Re: Home Buyers Tax Credit
That looks ok to me. If they disallow it the CRA will come after you for the tax, perhaps $2,500. I'd claim it, in good faith, but be ready to fork over the $2,500, if asked.
Mar 2nd 2022, 4:37 pm
#3
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Joined: Jan 2011
Location: Orton, Ontario
Posts: 2,032
Re: Home Buyers Tax Credit
Hi
Wanted to check my understanding of the Home Buyers Tax Credit for first-time buyers in Canada. We sold our UK home last year and purchased here in Canada - we last lived in the home in 2015 and have been renting since.
According to the federal guidance (below) we should be eligible as we have not lived in the UK house at any time in the preceding four years.
Am I missing anything?
Wanted to check my understanding of the Home Buyers Tax Credit for first-time buyers in Canada. We sold our UK home last year and purchased here in Canada - we last lived in the home in 2015 and have been renting since.
According to the federal guidance (below) we should be eligible as we have not lived in the UK house at any time in the preceding four years.
Am I missing anything?
is that its the tax on $5000 that you can claim back - not the $5000. Here is link to the article, Article
Mar 2nd 2022, 7:36 pm
#4
Assimilated Pauper
Joined: Mar 2005
Location: Ontario
Posts: 40,018
Re: Home Buyers Tax Credit
My understanding based on this:The home buyers’ tax credit is calculated using the lowest personal income tax rate for the year (i.e. 15% in 2022).Therefore, for homes purchased in 2022, you will get a credit of $750 (calculated as $5000 x 15%) when you file your taxes next year.
is that its the tax on $5000 that you can claim back - not the $5000. Here is link to the article, Article
is that its the tax on $5000 that you can claim back - not the $5000. Here is link to the article, Article
Mar 2nd 2022, 10:55 pm
#5
BE Forum Addict
Joined: Jan 2011
Location: Orton, Ontario
Posts: 2,032
Re: Home Buyers Tax Credit
Is it different from other tax credits then? Usually you subtract the credit amount from your taxable income so some, or all, of it is discounted at your highest tax rate for the year. Hence my thinking that you'd get $2,500 on $5,000. If it's the lowest rate then everyone would get $750 and it should be a grant, not a tax break.
Another Source:
The Home Buyers’ Amount offers a $5,000 non-refundable income tax credit amount on a qualifying home acquired during the year. For an eligible individual, the credit will provide up to $750 in federal tax relief.
Last edited by HGerchikov; Mar 2nd 2022 at 11:03 pm.
