{"id":6557,"date":"2022-03-22T13:31:16","date_gmt":"2022-03-22T17:31:16","guid":{"rendered":"http:\/\/xperto-hypotheque-victor-hugo.ca\/les-avantages-fiscaux-lors-de-lachat-dune-premiere-maison\/"},"modified":"2023-01-12T02:18:17","modified_gmt":"2023-01-12T07:18:17","slug":"tax-benefits-first-time-homebuyers","status":"publish","type":"post","link":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/tax-benefits-first-time-homebuyers\/","title":{"rendered":"Tax benefits of first-time homebuyers"},"content":{"rendered":"\n<p>Still hesitating to become a homeowner? Tax credits and incentive programs for those who want to buy a home may convince you to take the plunge.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why buy a house? To build your wealth!<\/h2>\n\n\n\n<p>Buying a property has many advantages. In many cases, it is a way to safely invest your money and significantly increase your assets. As a general rule, the value of a normally maintained property will increase significantly over the years, making it easier to plan for retirement.<\/p>\n\n\n\n<p>Also, if you have trouble putting money aside for personal savings (TFSA, RRSP or non-registered account), buying a home and making regular payments will help you build a nice nest egg.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The HBP (Homeownership Plan): &nbsp;<\/h2>\n\n\n\n<p>Would you like to have more money for your down payment, transfer taxes (welcome tax), notary fees, new furniture, etc.? With the HBP, if you or your spouse or common-law partner are Canadian residents, you can withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) at the time of your first home purchase, tax-free. A couple could get a total of $70,000.<\/p>\n\n\n\n<p>However, the amount withdrawn from your RRSP must be repaid gradually, over a maximum period of 15 years.&nbsp;<\/p>\n\n\n\n<p>Note that if you have not lived in a home that you or your common-law partner or spouse owned during the past four years, you are also considered a first-time home buyer.<\/p>\n\n\n\n<p>For more information on the HBP, visit <a href=\"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/mortgages\/hbp\/\">this page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The First-Time Homebuyers&#8217; Tax Credit (HBTC): its benefits and eligibility requirements<\/h2>\n\n\n\n<p>When purchasing a property, you may be eligible for the First-Time Homebuyer&#8217;s Tax Credit (FTHC) if:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><p>you are a first-time homeowner (first-time buyer) or you have not resided in a home you owned in the year of purchase or in the 4 previous years;<\/p>     <\/li>\n\n\n\n<li><p>you did not reside in a home owned by your spouse or common-law partner in the year you purchased the property or in the 4 previous years;<\/p>     <\/li>\n\n\n\n<li><p>your application is for one of the following eligible dwellings:<\/p>     <\/li>\n\n\n\n<li><p>single-family home;<\/p>     <\/li>\n\n\n\n<li><p>semi-detached house (semi-detached);<\/p>     <\/li>\n\n\n\n<li><p>townhouse (city house);<\/p>     <\/li>\n\n\n\n<li><p>mobile home;<\/p>     <\/li>\n\n\n\n<li><p>condominiums;<\/p>     <\/li>\n\n\n\n<li><p>apartment in a duplex, triplex, quadruplex or apartment building.&nbsp;<\/p>     <\/li>\n<\/ul>\n\n\n\n<p>The $5,000 credit is a $750 tax refund, which can be allocated to one person or divided between two co-owners.&nbsp;<\/p>\n\n\n\n<p>Why $750? Because the refund amount is calculated based on the lowest tax rate of 15% that the Canada Revenue Agency uses to multiply the $5,000 credit.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The CIAPH: more flexible conditions for people with disabilities<\/h2>\n\n\n\n<p>Persons with disabilities and their common-law partners or spouses may also be eligible for the $5,000 First-Time Home Buyers&#8217; Tax Credit (HBTC) (i.e., a $750 tax refund given to one person or divided between two co-owners).<\/p>\n\n\n\n<p>If this is the case, you will be eligible even if this is not your first property, you or your spouse owned a home in the year of purchase or in the four previous years, or you lived in a home that your spouse owned in the year of purchase or in the four previous years.<\/p>\n\n\n\n<p>All Quebecers and Canadians who benefit from the Disability Tax Credit are entitled to the HBTC, as well as their common-law partners or spouses at the time of purchase of a qualifying home.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Home Affordability Tax Credit (HATC)<\/h2>\n\n\n\n<p>If you purchase a property in Quebec or elsewhere in Canada and wish to renovate it to improve its accessibility and\/or make it safer for an eligible person, you may be able to realize tax savings of up to $10,000 per year through the Home Accessibility Tax Credit. Note that you may also be able to benefit from this credit by renovating your existing home.&nbsp;<\/p>\n\n\n\n<p>Those eligible for this credit are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><p>Specified individuals (i.e., individuals who qualify for the disability tax credit or those who are 65 years of age or older at the end of the year);<\/p>     <\/li>\n\n\n\n<li><p>Eligible individuals (the spouse or common-law partner or a family member of the specified individual &#8211; more details <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/individuals\/topics\/about-your-tax-return\/tax-return\/completing-a-tax-return\/deductions-credits-expenses\/line-31285-home-accessibility-expenses.html\">here<\/a>)<\/p>     <\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Moving Expenses for Work or Education Deduction&nbsp;<\/h2>\n\n\n\n<p>If you are moving more than 40 km from your current home to be closer to your workplace or new job, start a new business, or go to school full-time, you may be able to take advantage of significant deductions on your moving expenses. Here are some examples:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Transportation and storage costs for furniture (movers, towing, temporary storage and insurance).     <\/li>\n\n\n\n<li>Travel expenses (car, meals and lodging during the trip).<span style=\"font-size: revert; color: initial;\">     <\/span><\/li>\n\n\n\n<li>Legal fees.     <\/li>\n\n\n\n<li>Real estate brokerage fees.     <\/li>\n<\/ul>\n\n\n\n<p>These fees could be considered as eligible expenses on your income tax return and could save you significant amounts of money in taxes for the year in question.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Deductions for home office expenses<\/h2>\n\n\n\n<p>Homeowners who telecommute (employees or self-employed) can take advantage of deductions for many home-related expenses, including mortgage interest, home insurance, municipal and school taxes and more.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Partial refund of sales taxes (GST\/QST)<\/h2>\n\n\n\n<p>When you purchase a new home, you will receive a partial GST\/QST rebate (just over half of the 5% GST and 9.975% QST), which will be deducted directly from the final price.<\/p>\n\n\n\n<p>This rebate also applies to existing homes that have been substantially renovated (at least 90% of the interior of the home in question must have been removed and\/or replaced).<\/p>\n\n\n\n<p>Homeowners wishing to build a new home can also take advantage of this partial rebate of the GST and QST on the cost of materials, equipment and labour, under <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/forms-publications\/publications\/rc4028\/gst-hst-new-housing-rebate.html#nhrfobh\">certain conditions<\/a>. &nbsp;<\/p>\n\n\n<!-- wp:themify-builder\/canvas \/-->","protected":false},"excerpt":{"rendered":"<p>Still hesitating to become a homeowner? Tax credits and incentive programs for those who want to buy a home may convince you to take the plunge.&nbsp; Why buy a house? To build your wealth! Buying a property has many advantages. In many cases, it is a way to safely invest your money and significantly increase [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7648,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,3],"tags":[],"class_list":["post-6557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-non-classifiee","category-uncategorized","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"aioseo_notices":[],"builder_content":"","_links":{"self":[{"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/posts\/6557","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/comments?post=6557"}],"version-history":[{"count":4,"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/posts\/6557\/revisions"}],"predecessor-version":[{"id":7653,"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/posts\/6557\/revisions\/7653"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/media\/7648"}],"wp:attachment":[{"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/media?parent=6557"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/categories?post=6557"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xperto-hypotheque-victor-hugo.ca\/en\/wp-json\/wp\/v2\/tags?post=6557"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}