First-time Homebuyers Tax Credit
First-time homebuyers will now be able to claim a personal amount of $5,000 in respect of the purchase of a qualifying home.
The tax savings generated after it has been converted into a non-refundable tax credit will therefore be $750 (calculated as $5,000 x 15%).
A “qualifying home” and a “first-time home buyer” will have the same definitions as for purposes of the RRSP Home Buyers’ Plan.
The credit will also be available to taxpayers who are eligible for the disability tax credit if the home is acquired to enable the taxpayer to live in a more accessible dwelling or in an environment better suited to his or her personal needs and care.
To qualify for this amount, a program must:
- be ongoing (either a minimum of eight consecutive weeks long or, in the case of children’s camps, five consecutive days long);
- be supervised; and
- be suitable for children.
The program also has to meet one of the following criteria:
- it contributes to the development of creative skills or expertise in an artistic or cultural activity;
- it provides a substantial focus on wilderness and the natural environment;
- it helps children develop and use particular intellectual skills;
- it includes structured interaction among children where supervisors teach or help children develop interpersonal skills; or
- it provides enrichment or tutoring in academic subjects.
An activity that develops creative skills or expertise is only eligible if it is intended to improve a child’s dexterity or co-ordination, or helps in acquiring and applying knowledge through artistic or cultural activities such as literary arts, visual arts, performing arts, music, media, languages, customs, and heritage.