1st Time Home Buyer’s amount
Starting 2012, if you bought a home you may be able to save on your taxes through the first-time homebuyers’ tax credit.
Important facts
If you are a first time home buyer, a person with a disability buying a home, or an individual buying a home on behalf of a related person with a disability, you may be able to claim a non-refundable tax credit. Starting 2023 this amount was increased from $750 to $1500.
To qualify for the home buyer’s tax amount:
You OR your spouse or common-law partner must have purchased a qualifying home; and
You did not live in another home owned by you OR your spouse or common-law partner that year or in any of the four preceding years.
Persons with disabilities may also qualify for this credit even if they have already owned a home. If you are eligible for the disability amount or you purchased a home for the benefit of a related person who is eligible for the disability amount, you may be able to claim the credit.
You may also be eligible for the home buyer’s plan which allows you to withdraw funds from your RRSP.
For 2016 and subsequent tax years, you can claim a non-refundable tax credit as an eligible medical expense incurred for work performed or goods acquired for a qualifying renovation of an eligible dwelling of a qualifying individual
The Home Buyers' Plan (HBP) is a program that allows you to withdraw funds from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. From 2019 to 2023, you can withdraw up to $35,000 of your RRSP contributions to purchase a home. Starting 2024 the HBP withdrawal limit was increased from $35,000 to $60,000. The increased withdrawal limit applies to withdrawals made after April 16, 2024.
Generally, you have to repay all withdrawals to your RRSPs within a period of no more than 15 years starting 2 years after purchase. You will have to repay an amount to your RRSPs each year until your HBP balance is zero. If you do not repay the amount due for a year, it will be included in your income for that year.
Starting 2023 this tax credit will give $400 to low and moderate income renter individuals and families with an adjusted income of $60,000 or less. Individuals and families with an adjusted income greater than $60,000 and less than $80,000 may receive a reduced amount.
Click Find Out More for information on whether you qualify for this credit.
If you qualify for the B.C. Renter's tax credit complete the B.C. renter's form and submit with your documents.
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