New homeowner clients should take advantage of two boosts from CRA.
Remind them about the first-time home buyers’ tax credit. It’s a non-refundable tax credit of up to $750. To qualify, your client or her spouse or common-law partner must have bought the home, and she can’t have lived in another home she or her partner owned in the last four years.
For clients who qualify for the disability tax credit and have recently bought a home, they may qualify for the home credit even if it’s not their first house purchase.
Also let your clients know about CRA’s home buyers’ plan. That allows purchasers to take money out of their RRSPs to help buy their home. They can withdraw up to $25,000, and they have up to 15 years to replace the money in their account. The money can also go towards buying a home for a related person with a disability.