If you're a first-time home buyer in Canada, you can claim up to $750 in tax credits.
This new tax credit, which was introduced in 2009, is calculated by multiplying $5,000 by the lowest personal income tax rate for the year (15% in 2009), which is the amount of the first-time home buyer's tax credit for that year.
To qualify for this tax credit, the applicant has to meet two conditions:
1. The property was purchased by you, your spouse, or your de facto partner;
2. You have not lived in the property owned by yourself, your spouse, or your de facto partner during the year of the purchase and for the past four years.
The amount of tax credit that can be claimed for one property cannot exceed $750.
Medical expenses tax credit (METC)
Some people with mobility issues purchase medical equipment or devices to make their home more accessible. You can apply for a Canadian medical expenses tax credit for this expense.
The Government of Canada provides a detailed list of equipment or devices that are eligible for the medical expenses tax credit, including voice couplers, infant respiratory monitors, and assistive devices for people who are blind or deaf, as well as those that are not eligible for the tax credit.
GST/HST tax rebate (new housing rebate)
If you have purchased, built, or substantially renovated a home that you own, and the property costs less than $450,000, you can claim a new housing GST rebate.
Home buyer's plan
With a home buyer's plan, you can take $25,000 from your Registered Retirement Savings Plan (RRSP) to help you buy or build this home. Keep in mind, though, that this money has to be paid back.
If you want to apply for the program, you'll need to meet all of the terms put forth by the program, and if you're helping someone else apply, that person being helped will need to meet the conditions.
The exact eligibility criteria can be found on the CRA's T1036 tax return form.
Rental income tax relief
(Rental income)
If you are renting out a home you own or use, you can claim tax relief on your rental income and expenses, such as advertising, insurance, and interest on the money you borrowed to buy or renovate the home in the first place by completing a T776 tax return.
But it's important to distinguish between rental income and business income. If you rent out your home to others and only provide basic services, including heating, lighting, parking or laundry facilities, then the income you receive is rental income. If you also provide additional services to the tenant, such as housekeeping, security and food, you may be conducting a business.
The more services you provide, the more likely it is that your rental behavior is a business.
Selling your home tax relief
Generally, GST doesn't apply on the sale of a home, but there are some cases where you can claim GST relief when you sell your home. For example, if you build this house, you may have to pay GST.
If the home you sell is not your primary residence, you will need to report your capital gain to the government and pay the tax; if the home you sell has been your primary residence for at least two of the last five years, a portion of your capital gain is not taxable.
In addition, the tax-free capital gain is $500,000 for married taxpayers filing **** together and $250,000 for singles.
In addition, some moving expenses can be claimed as tax deductions.
B.C. Home Purchase Tax Credit
If you are a resident of B.C. and you purchase a new property or a home that has been extensively remodeled, and the purchase price is subject to GST, the purchaser can apply for a refund of the provincial government's share of the GST.
If the home builder also paid GST on lumber and renovation materials when they built and renovated the home, those expenditures can also be claimed as a deduction.
Home business tax relief
Thanks to technology, more and more people are choosing to work from home. If you work from home, there are a number of home company expenses that you can claim tax relief for, including heating, home insurance, electricity and cleaning appliances. However, it's important to carefully consider whether it's worth losing out on main residence tax relief as a result.