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Line 369 First-Time Home
Buyers' Tax Credit
Disability Home Purchase Tax Credit
Income Tax Act s. 118.05
A non-refundable tax credit was enacted as part of the 2009
Federal Budget, based on
an amount of $5,000 for first-time home buyers who acquire a qualifying
home after January 27, 2009. The home is considered to be acquired
once it is registered in your name in accordance with the land
registration system or other similar system applicable where it is located
(in Canada). The year of acquisition is the year in which the tax
credit can be claimed. If you missed claiming this credit in the
year of purchase, you can file an adjustment to your tax return. See
our article on Changing Your Tax Return.
Note that if a home is gifted to a person, as long as
all other requirements are met, the person can still qualify for the home
buyers' tax credit. The person who gifted the home is deemed to have
disposed of it, and may have to report a capital gain.
The credit is also be available in
respect of a home acquired by an individual who is eligible for the
disability tax credit (DTC), or by an individual for the benefit of a
DTC-eligible relative, if the home is acquired to enable the DTC-eligible
person to live in a more accessible dwelling.
The credit can be claimed by the individual who
acquires the home, or by the spouse or common-law partner of that
individual, or can be split between spouses.
To be eligible for this credit, neither the individual
nor the individual's spouse or common-law partner can have owned and lived
in another home, anywhere in Canada, in the calendar year of the home
purchase or in any of the four preceding calendar years.