7 Tax Deductions for Canadian Homeowners Tax deductions for Canadian homeowners #1 First-time home buyer If you are a first-time home buyer, you can claim a non-refundable tax credit to a maximum of $750. This non-refundable tax credit is based on a percentage of $5,000. So if this is your first foray into home ownership, then take advantage. Tax deductions for Canadian homeowners #2 Renovations for medical reasons Those with mobility issues who had renovations done to accommodate it can claim this as an expense that was required in order to make their home more accessible. Keep in mind, however, that medical expense reimbursement has to fall within a 12-month period ending in the current tax year. Tax deductions for Canadian homeowners #3 New home rebate If you bought a new home that cost less than $450,000 or you renovated your home extensively and live in it (it’s your principal residence), you may be able to claim the GST or HST under the new housing rebate. There are even tax deductions for homeowners who built their own homes, as well as for rental homes. Speak to your accountant about how it may apply to you in your respective province. Tax deductions for Canadian homeowners #4 The Home Buyer’s Plan The Home Buyer’s Plan allows those who plan to purchase a residence to withdraw up to $25,000 from their RRSP (Registered Retirement Savings Plan) to help with the purchase or even the construction of a home. The best part is that you can pay it back over a 15-year period without penalty. Tax deductions for Canadian homeowners #5 Allowable expenses for rentals Renting out a property you own or that you are currently using? Report your rental income and claim allowable expenses like advertising, insurance and interest on the money you borrow to make improvements. Tax deductions for Canadian homeowners #6 Working from home If you work from home and pay taxes, you can claim heating, home insurance, electricity and even cleaning appliances as expenses. Tax deductions for Canadian homeowners #7 Selling your home Typically, the taxes do not apply when you sell your home, but there are cases where it does. If you built the home or sold a home that you don’t currently live in, then you may have to pay the GST or HST. However, there are a few moving tax deductions available that you may want to take advantage of. Other tax deductions for Canadian homeowners There exist other tax deductions that are available on a province by province basis, such as builders in Ontario and B.C. being able to recover the HST on the lumber and materials purchased to build or renovate a home, or the Manitoba homeowner’s home tax credits. Inquire about all the tax deductions available to you and you may be surprised at how much money you can recover just by being a homeowner. As well, keep in mind that 58% of Canadians would rather buy a home from someone who is not working on commission, so whether you plan on buying or selling a home, visit ComFree today and forgo the commission.
Posted on: Sat, 07 Sep 2013 13:38:21 +0000
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