Tag Archive for time homebuyers

Laurin Jeffrey | April 3, 2011
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HST Education for Homebuyers in Ontario

PropertyWire.ca

There are many factors for homebuyers to consider when purchasing a house these days-particularly in the province of Ontario, where the HST has become a factor over the last several months.

The Ontario Real Estate Association, in partnership with Ontario Revenue Minister Sophia Aggelonitis, have released a video to clarify the rules for those looking to purchase a home and to eliminate confusion around HST as it applies to resale and new home purchases.

The video aims to educate Ontarians that there is no HST on resale homes, maintaining similar taxation rules to those under the old provincial tax. In addition, HST is only applied to the portion of new home purchases above $400,000. For first time homebuyers, a refund of Land Transfer Tax of up to $2,000 is available on resale homes.

Analysts feel that there has been less material impact for consumers than anticipated; there is also a common belief  that consumers are  not fully aware of how the HST is applied to specific purchases—in particular with home buying.

Also, it is important for homebuyers to know about the Ontario Enhanced New Housing Rebate, which “means that buyers of new homes receive a rebate of up to $24,000 regardless of the price of the new home. Buyers of new homes priced up to $400,000 (about three-quarters of new homes built in Ontario) on average pay no more – and possibly even less – tax than under the previous PST, where sales tax was hidden in the price.”

Speaking exclusively with Propertywire.ca, Steven Fudge, Sales Rep, Bosley R.E. Ltd., Brokerage sees varying levels of impact and awareness of  the HST in his Toronto market and says, if anything, taxation of all kinds is forefront on Toronto homebuyers’ minds; “Most of my buyers appear aware that HST is not applicable on resale housing, though I have seen a marked increase in buyers double-checking what all the closing costs are. With the double-whammy of both a provincial and city land transfer tax, buyers are weary of taxation”

“(Also) my downtown homebuyers are typically aware that HST is not applicable on resale housing. They’re more frustrated that the new mayor, Rob Ford, isn’t eliminating the City’s land transfer tax, which was part of his election platform.

Watch the video www.ontario.ca/taxchange or www.youtube.com/oreagr

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Contact the Jeffrey Team for more information  -  416-388-1960

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Laurin Jeffrey | September 2, 2010
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First-Time Home Buyers Tax Credit

The First-Time Home Buyers Tax Credit (HBTC) is one of the measures provided by the federal government in 2009 to encourage investment in Canadian housing.

For 2009 and subsequent years, the HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., generally means that the closing is after this date).

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit was $750. Each year, the credit is recalculated, so it may be higher or lower than previous years.

How do you qualify for the tax credit?

You, and anyone you purchase the home with, must be considered a first time home buyer to be eligible for the tax credit. The home must be used as your principal residence, and if you purchase with your spouse, common-law partner, or even a friend, then either one of you can claim the credit (or share it). However, the combined total cannot exceed $750.

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first time home buyer. See the Government of Canada website for further details.

What is a qualifying home?

To qualify for the First-Time Home Buyers Tax Credit, a home must be a housing unit located in Canada, including mobile homes, condominiums and apartments. A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies.  However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

Also, 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.

How to Claim the First-Time Home Buyers Tax Credit?

First-time homebuyers purchasing a home may claim the HBTC on their income tax returns. Starting with the 2009 taxation year, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.

The home must be registered in your or your spouse’s or common-law partner’s name in accordance with the applicable land registration system.

Claimants should ensure that documentation supporting the purchase transaction is available if requested by the Canada Revenue Agency. Claimants are also responsible for making sure that all applicable eligibility conditions are met.

Keep the HBTC in mind when you consider buying a Canadian home. It’s just another great reason to take the final step of real estate home ownership.

For more Information visit: http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html

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Contact the Jeffrey Team for more information  -  416-388-1960

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