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:
- 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
- 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
- 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.
- 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.
- 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
- 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.