First Time Home Buyer’s Tax Credit

A important message and reminder at tax time from Real Estate lawyer Jonathan G. Griffiths...

" It's getting to be tax time again! If you have first time buyer clients who bought a home last year you may want to make sure that they know about line 359 on their income tax return. Its called the First Time Home Buyer’s Tax Credit and it allows for a tax credit of up to 15 percent of closing costs to a maximum of $5,000.00 so effectively $750. Where more than one person purchases the $750 is shared. It seems that closing costs include CMHC fees so most people would qualify for the maximum. Its the broader Federal government definition of first time buyer, and the buyer or spouse must intend to occupy within a year of acquisition as principal residence to qualify for the credit. If any of your first time buyers were unaware of this credit and have not claimed the credit in previous years, my accountant says that it is possible to go back four years to claim the credit by filing a T1 Adjustment for the year in question."