First-Time Home Buyers Tax Credit (HBTC)

how to claim first time home buyer tax credit

By Susan Munroe. Canada News Expert

Susan Munroe is a Canadian public affairs and communications professional. Read more

Updated: 03/12/2015

The First-Time Home Buyers Tax Credit (HBTC) is a non-refundable tax credit for eligible home buyers who buy a qualifying home after January 27, 2009. If you have a disability or are buying a home for a relative with a disability, you do not have to be a first-time home buyer.

Value of the Home Buyers Tax Credit

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In 2014 the lowest federal income tax rate was 15 percent, and it remains the same in 2015, so the value of the HBTC would be $750.

Who is Eligible for the First-Time Home Buyers Tax Credit?

You are eligible if you

  • buy a qualifying home and
  • neither you nor your spouse or common-law partner owned and lived in another home in the year of purchase or

    any of the four preceding years.

If you have a disability, or are buying a home for a related person with a disability, you do not have to be a first-time home buyer to qualify for the Home Buyers Tax Credit.

However, the home must be bought to be more accessible or to provide a better environment for the needs and care of the person with the disability.

What Homes Qualify for the First-Time Home Buyers Tax Credit?

To qualify for the First-Time Home Buyers Tax Credit, a home must be a housing unit located in Canada, including mobile homes, condominiums and apartments. Shares in co-op housing that provide an equity stake also qualify.

Also, you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.

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Sharing the Tax Credit

Source: canadaonline.about.com

Category: Credit

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