Home Buyer’s tax credit
Starting 2012, if you bought a home you may be able to save on your taxes through the home buyers’ tax credit.
You can claim up to a $10,000 non refundable tax credit resulting in a reduction of tax owing of up to $1500 for the purchase of a qualifying home in 2024 if you meet both of the following conditions:
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.
When only one spouse (or common-law partner) meets all of the conditions to apply for the first-time home buyer's tax credit, only the spouse (or common-law partner) who qualifies for the credit can claim the home buyers' amount, regardless of the fact that the other spouse (or common-law partner) cannot.
You do not have to be a first-time home buyer if either:
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.
First Home Savings Account (FHSA)
A first home savings account (FHSA) is a registered plan which allows you, if you are a first-time home buyer to save to buy or build a qualifying first home tax-free (up to certain limits).
Multigenerational home renovation tax credit (MHRTC)
The Multigenerational home renovation tax credit (MHRTC) is a refundable tax credit that can be claimed on your income tax and benefit return.
If you are eligible, you can claim this credit for certain renovation expenses to create a self-contained secondary unit. The secondary unit must allow a senior or an adult who is eligible for the disability tax credit to live with a qualifying relative.
You can claim up to $50,000 in qualifying expenditures for each qualifying renovation that is completed. The tax credit is 15% of your costs, up to a maximum of $7,500, for each claim you are eligible to make.
Home Accessibility
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
Home Buyers' Plan
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.
BC Renter's Tax Credit
Starting 2023 this tax credit will give $400 to low and moderate income renter individuals and families with an adjusted income of $63,000 or less. Individuals and families with an adjusted income greater than $63,000 and less than $83,000 may receive a reduced amount.
If you qualify for the B.C. Renter's tax credit complete the B.C. renter's form and submit with your documents.