If you own your own home, you may qualify for certain non-refundable tax credits and exemptions.
2 key tax credits
1. First-Time Home Buyers’ Tax Credit (HBTC)
You or your spouse can claim the $5,000 HBTC. For 2011, the maximum credit is $750 ($5,000 x 15%, the lowest personal tax rate).
To qualify:
- You or your spouse must have acquired a qualifying home after January 27, 2009.
- You can't have lived in another home owned by you or your spouse in the year you buy your first home – or in any of the 4 previous years.
To qualify for the HBTC, you can't have lived in another home owned by you or your spouse in the year you buy your first home – or in any of the 4 previous years.
2. Home Renovation Tax Credit (HRTC)
The HRTC was a one-time credit for qualifying home renovations made between January 28, 2009 and January 31, 2010. If you qualified for this tax credit but forgot to claim it on your 2009 tax return, contact the Canada Revenue Agency (CRA) to find out if you can still claim it.
The tax credit allowed homeowners to claim 15% of qualifying expenses that cost more than $1,000 but less than $10,000, to a maximum of $1,350 per family. Qualifying expenses included cost of labour, building materials, fixtures and equipment rental.
Principal Residence Exemption
You won’t pay tax on any money you make when you sell your principal residence. You don't have to report the sale on your tax return. If prices go down and you lose money selling your home, you can't claim the loss on your tax return. Learn more about the Principal Residence Exemption.
Home Buyers’ Plan (HBP)
You can borrow up to $25,000 from your Registered Retirement Savings Plan (RRSP) under the HBP to buy or build a qualifying home for yourself, or someone with a disability who is related to you. You won't pay any tax on the money as long as you pay it back within 15 years.