First-time Homebuyers Tax Credit

Tax Tips

 

First-time Homebuyers Tax Credit

First-time homebuyers will now be able to claim a personal amount of $5,000 in respect of the purchase of a qualifying home. The tax savings generated after it has been converted into a non-refundable tax credit will therefore be $750 (calculated as $5,000 x 15%).

A «qualifying home» and a «first-time home buyer» will have the same definitions as for purposes of the RRSP Home Buyers’ Plan. The closing date on the new home must be after January 27, 2009. The credit will also be available to taxpayers who are eligible for the disability tax credit if the home is acquired to enable the taxpayer to live in a more accessible dwelling or in an environment better suited to his or her personal needs and care.