It is that time of year again….TAX time!
I just want to remind you that if you were a first time home buyer in 2017, you have credits waiting! Ensure that you claim your First time home buyers credit on your taxes if your closing date was between January 1 – December 31, 2017.
First Time Home Buyers Credit (FTHBC)
The FTHB Tax Credit offers a $5,000 non–refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief. You can claim the credit on your own, or your spouse can claim it or you can share the credit.
You should double check with the Canada Revenue Agency (CRA) if any doubt about your eligibility. However, if you or your spouse / common law partner acquired a qualifying home and you didn’t live in another home owned by you or your spouse in the year of acquisition or any of the four preceding years, than you will likely qualify. And if you’re buying a house for a related person with a disability (or disabled yourself) you don’t have to be a first time buyer to qualify. Provided that the purchase is related to the disability and better suited to the needs and care of that person, or more accessible dwelling.
A qualifying home is a housing unit located in Canada, and any type of existing home or home being constructed. However, you must occupy the home within one year of acquisition.
Beginning with the 2009 personal income tax return, the CRA incorporated line 369 into the Schedule 1, of the Federal Tax credits to allow you to claim the credit in the year in which you acquired the qualifying home.
Important dates to remember
As a note, if you are self employed your annual income tax is due on April 30th 2018, however, that deadline is extended to June 15. That being said, you do not want to wait that long. On April 30 the CRA will begin to charge you interest on taxes owed. The CRA charges a late filing penalty of 5 percent of your balance owed plus an additional 1 percent for each month late.
Albert Einstein was quoted saying “The hardest thing in the world to understand is the income tax.” Hopefully, this little tidbit helps you as a gentle reminder to put some money back in your pockets!
Now go get those taxes done and put some money back in your pocket.
If I can be of any assistance to you or anyone you know in the Guelph area with real estate, do not hesitate to contact me at 519-824-9050 ext. 235.