The Home Buyers’ Amount provides a valuable opportunity for eligible individuals to claim up to $10,000 when purchasing a qualifying home, contingent upon meeting specific criteria set out by the Canada Revenue Agency (CRA).
Qualifying Conditions
To qualify for this benefit:
- You, your spouse, or common-law partner must have acquired a qualifying home.
- The home must not have been occupied by you, your spouse, or common-law partner in the current year of acquisition or in any of the four preceding years, unless you are a person with a disability.
First-Time Home Buyers
If you are a first-time home buyer, you can claim this amount. It’s important to note that only one spouse or common-law partner needs to meet both conditions to be eligible for the claim.
Qualifying Home Definition
A qualifying home must meet specific criteria:
- It must be registered in your name, your spouse’s name, or your common-law partner’s name under the applicable land registration system in Canada.
- Qualifying homes include single-family houses, semi-detached houses, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings.
- Additionally, shares in a co-operative housing corporation that provide ownership and equity interest in a housing unit in Canada qualify, provided they confer ownership rights rather than mere tenancy.
Intended Use
It’s essential that you or a related person with a disability intend to occupy the home as a principal place of residence no later than one year after its acquisition.
Persons with Disabilities
Special provisions apply if:
- You are eligible for the disability tax credit, or
- You acquired the home for the benefit of a related person who is eligible for the disability tax credit.
For persons with disabilities, the purchase must be intended to provide a more accessible or suitable living environment.
Tax Return Completion
When completing your tax return:
- Enter $10,000 on line 31270 if you are not splitting the amount with your spouse or common-law partner.
- If you are splitting the claim, ensure that the combined total does not exceed $10,000.
Joint Ownership
In cases of joint ownership (e.g., when two or more people jointly purchase a home), the total claimable amount cannot exceed $10,000.
Documentation
It’s crucial to retain all relevant documents in case the CRA requests verification.
Forms and Resources
Forms necessary for claiming the Home Buyers’ Amount include the Income Tax Package and Form T2201 (Disability Tax Credit Certificate), if applicable.
This initiative not only supports home ownership but also facilitates accessibility improvements for persons with disabilities, contributing to a more inclusive housing landscape in Canada. It encourages responsible home buying while ensuring equitable access to housing opportunities across various property types throughout the country.
