08 Apr Do I Qualify for Home Tax Deductions & Credits in Canada
Taxes and accounting in general are always confusing but what if you qualified for home tax deductions? It’s almost like the opportunities to get some cash back in the form of credits is hidden on purpose. Luckily you can cash in if you know what to look for.
Give and take
Shaving down your taxes is definitely something to be excited about. Getting a meaty return isn’t as hard as we think, it just isn’t advertised well. There are credits for all sorts of things, including getting a new home.
Some of those include:
- Donations: Into politics? Donating to charities, political parties or candidates can get you a credit, starting at 15% on the first $200 and going up from there.
- Transit passes: If you find yourself taking public transit more than driving than you might be able to get a little back for the money spent on passes. Weekly and monthly passes can be claimed if you’ve got the receipts (or the cards themselves in some places)
- Children: Expenses for childcare, arts and fitness are covered as well as a separate credit for kids under 18. If you have children, there are quite a few credits you should look at.
- Medical: Treatments, medicine and even food in your diet (if you’ve got a special one relating to your health) may all have the potential to be claimed. Disability credits are worth $1500 per adult alone and there’s some little known ones that can even be claimed for conditions like ADHD or Anxiety Disorders.
Those are just the tip of the iceberg. These conveniently obscured tax credits can all add up (if you’re eligible) but what you should really be interested in is the home tax deductions.
A little help, please
Believe it or not, as a new homeowner, you’re entitled to a tax credit yourself. You can get up to a $5000 tax credit if you meet a few requirements.
Firstly, it has to be a new home. What that means is that you (and your spouse) cannot have lived in an owned home in the past four years. Naturally, rental properties or the family home are excluded.
Secondly, the home has to be a qualifying home. The rest is a matter of actually claiming it and filling out the necessary information. Simply being aware of the credit is almost enough to get it!
The extra help is certainly welcome and it’s up to you to be resourceful. By combining some of the credits above, the first-time home buyers credit and even claiming moving expenses under certain conditions life gets a lot easier.
Now, we’re not saying there’s a tax credit out there for everything but there are plenty that are out of sight and worth looking for.
Qualifying for home tax deductions and other credits isn’t difficult and if you’re trying to stay within a budget and be smart with your money, they shouldn’t be overlooked. The effort is minimal and the payoff is worth it.
Take Advantage of the New Homeowner Credit
Finding the right home for your wants and needs can be very challenging, At Previn Court Homes, we recognize the peace of mind that a newly built home provides, and our friendly staff takes the time to introduce you to all of the features of our quality residences.
With over a thousand homes built over the last few decades, and plans to build thousands more, we know how to create houses that families call home, and we invite you to explore our models. Contact us to learn more about our homes, or register for priority updates and special offers, and let us help you find your dream home.