6 Tax Benefits of Owning a Home

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If you own a home, this information will bring a smile to your face and might even have you looking forward to tax season! Okay, let’s not get carried away right? But if you are a Canadian homeowner, there are a number of tax benefits that will leave more money in your pockets. Curious yet?

Continue reading to see how owning a home can mean you get some cash back come tax season.

Here are 6 tax benefits of owning a home that you want to keep in mind come tax season:

  1. For First Time Home Buyers

If you are a first time home buyer, you can claim a non-refundable tax credit to a maximum of

$750. The credit is based o $5,000 multiplied by the lowest federal income tax rate for that

year. So don’t forget to take advantage of this credit if you are or will be a first time home

buyer!

  1. New Home Rebate

Did you buy a new home within the past year? Or did you do extensive renovations on your

primary residence? Then expect some money to come your way in the form of rebates. New

home buyers of homes costing less than $350,000 can get a rebate that is 36 percent of the

federal portion of the HST they paid to a maximum of $6,300. For homes costing more than

this are eligibile for less of a rebate and if a home is over $450,000 it will not reply. However,

new home buyers can also apply for a rebate of 75 percent on the provincial portion of the

  1. Rental Expenses

If your property is a rental property, report your rental income and claim expenses such as

advertising and marketing, insurance, and interest on the money you borrow to make

improvements to your rental property.

  1. Renovations for Medical Reasons

Do you have mobility issues? If you have mobility issues and have done some renovations on

your home in order to accommodate these issues, you can claim them as an expense. Note

that this medical expense reimbursement has to fall within a 12-month period ending in the

current tax year.

  1. Mortgage Interest

More deductions coming your way! Do you work from home? If you are carrying a mortgage

on your home and you work from home then you can claim your mortgage interest under

Business-use-of-home expenses - that is if your business meets the requirements for

Business-use-of-home deductions.

  1. Property Taxes

You property taxes can also be claimed as expenses if you work from home. You can’t deduct

the entire amount of property taxes. You can only deduct a portion of these expenses which is

dependent on how much living space you use for business.