It’s a new year and a new tax season! Although your 2021 tax return isn’t due until April 2022, the sooner you start preparing the better. It pays to learn how to keep more of your hard-earned money in your own pocket and these tax credits for homeowners are a great way to start. Don’t forget to keep all receipts and documentation when you submit your tax return in case the CRA requests more information.
• First-time home buyers' tax credit: You can claim $5,000 if you bought your first home last year (or if you haven't lived in a home owned by you or your spouse in the last four years). It must be a qualifying home though.
• GST/HST new housing rebate: If you paid Goods and Services Tax (GST) or Harmonized Sales Tax (HST) on a home that was newly built or substantially renovated, you may be eligible for the new housing rebate on part of the tax.
• Home buyers' tax credit for people with disabilities: You may be eligible for the Home Buyers' Tax Credit even if you aren't a first-time home buyer, if you or your spouse/common-law partner meet the CRA’s eligibility requirements for a person with disabilities.
• Home accessibility tax credit: In the same vein, if you meet the CRA’s eligibility requirements for a person with disabilities or you are over the age of 65 (or you are eligible to make the claim for someone else), and you make permanent renovations to your home in order to make it more accessible.
• Deductions from moving: If you moved to attend school full-time, launch a new business or take a new job, your moving expenses could be tax-deductible.
• Working from home: If you work from home, you may be able to claim eligible home office expenses.
• Rental income: If you are renting out all or part of your property (including short-term rentals), don’t forget to declare the income earned. On the flip side, don’t forget to allowable expenses such as property taxes or interest.
This article is for informational purposes only and does not constitute financial advice. Please seek professional advice for your own personal situation.