First Time Home Buyers Tax Credit (HBTC)

What’s in this article?

 

What is this?

The First Time Home Buyers Tax Credit (HBTC) is a federal, non-refundable tax credit for first time home buyers. If you purchase a qualified home during the tax year, you can apply for a credit amount of $750. You can split this credit with your spouse or common-law partner, provided you both do not claim more than the maximum amount of $5,000.

 

Am I eligible?

You are eligible for the HBTC if the following conditions are met:

  • You or your spouse/common-law partner bought a qualifying home in Canada during the tax year
  • You did not live in another home owned by you or your spouse/common-law partner in the year of purchase or in any of the four preceding years
  • You occupy the home no later than one year after you buy it as your principal residence

Disability Amount Claim for the HBTC

If you or your spouse/common-law partner are eligible to claim a disability amount, you do not have to be a first-time home buyer to qualify for this tax credit. If you are moving into a home which better enables the personal needs and care of the disabled person, you also qualify to apply for the HBTC. The person with the disability must occupy the home as a principal place of residence not later than one year after it is bought.

Canada Revenue Agency (CRA) says…..

A qualifying home must be registered in your and/or your spouse's or common-law partner's name in accordance with the applicable land registration system, and it must be located in Canada. It includes existing homes and homes under construction.

The following are considered qualifying homes:

  • single-family houses;
  • semi-detached houses;
  • townhouses;
  • mobile homes;
  • condominium units; and
  • apartments in duplexes, triplexes, fourplexes, or apartment buildings

 

Where do I claim this?

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

  1. Click the PREPARE tab.
  2. Click the OTHER icon. You will find yourself here:
  3. On the SPECIAL SITUATIONS page, enter the credit amount you want to claim in the field next to the label, If you purchased a home in 2015 that qualifies for the home buyers’ amount, enter how much of the $5,000 credit you’d like to claim.

 

Where can I learn more?