Tuesday, 26 January 2016

Did You Buy a Home in 2015? Want to Save Money this Tax Season???

Hey everybody! This is one of those opportunities that I love in my job where I get to be the bearer of excellent news, and I love that!

For those of you who bought a home for the first time in 2015(or even for some of you who weren't first-timers), there could be some big tax savings coming your way when you file your 2015 tax return. Make sure to discuss all the options with your tax professional or accountant, but the basics are as follows:

-Eligible first time home buyers who purchased a home in 2015 can claim an amount of $5,000 on your 2015 tax return. This in turn could lower your taxes due or result in a larger refund. Either way, it's a win-win if you qualify so make sure to ask about it when filing this year.

-Eligible persons who purchased a home in 2015 and qualify for the disability tax credit, or those purchasing a home for the benefit of family who is eligible for the disability tax credit may also qualify to claim the same $5,000 amount. You do not have to be a first time home buyer to qualify for this amount under this disability credit program.

If you're interested in the details, check out the official CRA page here:

http://www.cra-arc.gc.ca/nwsrm/txtps/2016/tt160120-eng.html

For those who haven't bought yet, or are thinking about purchasing in 2016, make sure you look into the RRSP Home Buyers Program, which allows eligible first time home buyers the opportunity to access their RRSP savings without paying tax on the amounts withdrawn. Details on this program can also be found at the link above.

If you are able to plan your purchase to combine these two great government programs, you could stand to save yourself a whole bunch of money while getting your first foothold on the property ladder!

***This article is intended for informational purposes only. Please refer to your tax professional or the official CRA guidelines to determine eligibility or for the most up-to-date information. CRA guidelines are subject to change at any time.***

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