There has been sone confusion regarding the recent announcement from the Provincial Government about the First Time Home Buyer’s Tax Credit. There are 2 programs in effect. Here is a summary clarifying both programs:
New Home Buyer’s Bonus:
– Only applies in British Columbia
-5% of the purchase price to a maximum of $10,000 bonus payable
-Applies only to purchase of new construction or substantially renovated property
–All buyers must be first time home owners, anywhere, ever
–Separate form to complete and apply
-Funds are sent directly to buyer upon approval
First Time Home Buyer’s Tax Credit:
-Non-refundable tax credit applied against taxable income using the lowest marginal tax rate ($750 maximum tax refund)
-Apply using line 369 of Schedule 1 on the Federal tax form
-Only reduces taxes payable by that amount, not a bonus or grant
-Applies to purchase of new and existing homes
-Applicant or spouse (or common law) must be first time home buyers, ie not have lived in a home owned by self or spouse in any of the 4 preceding years.
-Apply when filing income taxes in the year of purchase
As always, we are here to help.