The Canadian Federal Government introduced a NEW 1st Time Home Buyers’ Tax Credit in the budget.
This is great news for First Time Home Buyers......along with Record Low Mortgage Interest rates now is a great time for New Home Buyers.
In 2009 and subsequent years, the budget proposes to introduce a New non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after this past January 27, 2009
Called the Home Buyer Tax Credit or HBTC
An new home individual will qualify for the HBTC if:
they acquire a qualifying home; and
Neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.
What is a qualifying home for a Tax Credit?
is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies.
However, a share that only provides you with a right to tenancy in the housing unit does not qualify.
you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.
If I buy a house, can my spouse or common-law partner claim the Tax Credit?
Either one of you can claim the credit or you can share the credit. However, the total of both your claims cannot exceed $750.
How will I claim the new HBTC?
Beginning with the 2009 personal income tax return
a new line will be incorporated to allow you to claim the credit.
Where can I get more information about the new 1st Time Home Buyer Tax Credit?
Canada Revenue Agency encourages taxpayers to check our Web site often,
all new forms, policies, and guidelines will be posted here as they become available.
More Documents are also available immediately at the Canadian Department of Finance's Budget 2009 for details.
Low mortgage interest rates are certainly helping Buyers back into Victoria Real Estate Market. Current One Year Mortgages Rates are at only 3.5%
Home Buyers have been Comparative Shoppers, and Sellers who price their home correctly are Selling quickly.
Copyright © 2010 By Fred Carver All Rights Reserved "Canada's Government Introduces Financial Help for 1st Time Home Buyers"
Original Article Written Here by Fred Carver
Victoria BC Real Estate