First Time Home Buyer Tax Credit

Did you or someone you know purchase their first home in 2023? Did you know you can claim $10,000 for the purchase of a qualifying home in the year if both of the following apply:

  • You or your spouse or common-law partner acquired a qualifying home
  • you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer)

Does your home qualify?

A qualifying home must be registered in your 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
  • apartments in duplexes, triplexes, fourplexes, or apartment buildings

Note: A share in a co-operative housing corporation that entitles you to own and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only gives you the right to tenancy in the housing unit does not qualify.

You must intend to occupy the home, or you must intend that the related person with a disability occupy the home, as a principal place of residence no later than one year after it is acquired.

Completing your tax return:

Enter $10,000 on line 31270 of your return, if you are not splitting the amount with your spouse or common-law partner.

You and your spouse or common-law partner can split the claim but the combined total cannot be more than $10,000.

When more than one person is entitled to the amount (for example when two people jointly buy a home), the total of all amounts claimed cannot be more than $10,000.

Keep all your documents in case the CRA asks to see them later.

  

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