Who can benefit from the first-time home buyers’ tax credit?

Did you buy your first home in 2019? If so, you can benefit from the First-Time Home Buyers’ Tax Credit, for federal and provincial purposes. This credit allows new homeowners to claim a tax credit in the year in which they purchased their first home. Note however that certain conditions apply!

Eligibility requirements

• This credit applies to those who purchased a qualifying home for the first time;
• You must not have lived in any other home that you, your spouse, or your common-law partner owned in the acquisition year or in any of the four previous tax years;
• For federal and provincial purposes, the residence must have been acquired with the intention of making it your principal residence. You must therefore occupy your property no later than one year after the acquisition date;
• On the provincial side, your province of residence must be Quebec as of December 31, 2019.

Note

If you or a family member qualifies for the disability tax credit, you do not have to be a first-time home buyer to receive the credit. However, the purchase of the home must allow the disabled person to live in a dwelling that makes it easy to move around and perform daily living tasks. This dwelling must be located in an environment that is better suited to the person’s personal needs or the care required.

Furthermore, you or the person with a disability must intend to occupy the property as the principal residence no later than one year after it is acquired. The tax authorities define a family member as: a relative, whether related by blood, marriage, common-law or adoption.

Eligible dwelling

The home must be registered in your name or in the name of your spouse or common-law partner and must be located in Canada. For provincial purposes, it must be located in Quebec to qualify. It can be an existing home or a home under construction.

Furthermore, the dwelling must be:

• a single-family, semi-detached or row house;
• an apartment in a residential duplex, triplex or quadruplex;
• a mobile home;
• a condominium.

Credit amount

At the provincial and federal levels, the maximum amount of the tax credit for acquiring a first home is $750. You can also claim this credit jointly with the co-owner(s). However, the maximum amount you can claim on your federal and provincial returns will remain $750. Keep your supporting documents! If you are audited, you may be required to provide a proof of purchase. In general, your proof of purchase must contain the notarial deed, the home address and the occupancy date.

For more information about the first-time home buyers’ tax credit, go to the Revenu Québec and Canada Revenue Agency websites.

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