First-time Home Buyers’ Tax Credit (FTHBC) First-time home buyers may be eligible for a 15 per-cent income tax credit on a maximum of $5,000 of home closing costs such as legal fees, land transfer taxes etc. for closing costs. This means a maximum tax relief of $750.
To be eligible, first-time Canadian home buyers must have bought a home which closed after January 27, 2009 and is claimable for the tax year in which the home is closed. A home buyer will be considered a first time home buyer and eligible for this tax credit if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years. Homes that qualify for the tax credit include existing or newly constructed single-detached houses, semi-detached houses, condominiums, multiplexes, apartment buildings and mobile homes. The homeowner must occupy the home in order to receive the tax credit. The tax credit amount is calculated by multiplying $5,000 by the lowest personal tax rate, and is claimed by homeowners within their personal income tax returns. For more information contact Service Canada at 1-800-622-6232 or visit www.fin.gc.ca    
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