Many Canadian taxpayers overpay on their taxes because they fail to claim some of the common credits they are entitled to. Don’t let ignorance stop you this year. As a homeowner there are several tax deductions available to claim. It’s best to ask an accounting expert about all the tax credits available for you however here is a list of the most frequently over-looked ones for homeowners.
First time buyer’s tax credit. If you bought a home for the first time, you are eligible to claim a non-refundable tax credit of up to $750. You or your common law partner can claim this tax credit.
GST tax rebate (new housing rebate). If you purchase a new home as your principal residence and if the home is less than $450,000 you may also be able to claim the GST new housing rebate. Other home tax deductions exist for homes that are built by the owner as well as for residential rental properties.
Home Buyer’s Plan. The Home Buyer’s Plan allows a buyer to withdraw up to $25,000 from your RRSP’s to help with the downpayment. Certain conditions apply.
Medical expenses tax credit. People with mobility impairments can claim renovation expenses to make their home more accessible. The Government of Canada provides an extensive list of expenses that are eligible and ones that are not.
Moving expenses. If you move within Canada, your moving expenses may be tax deductible. Conditions are: you must be employed and your new location must be 40kms closer to your place of work. Included are situations of moving out to start your first job and starting your own business. The expenses eligible include hiring movers, breaking a lease, storage, meals and lodging while traveling, legal fees, and real estate commissions.
Working from home expenses. If you operate a business out of your home, you can claim a deduction for that part of the home that is used to conduct business activities. Eligible expenses include a portion of your mortgage interest, property taxes, and utilities. The portion eligible is the percentage of the space allotted to run the business (sq ft of room/sq ft of whole house).
Rental income. Did you know as an investor you can claim things like advertising, insurance, and interest on money you borrow to buy or improve the property? Many investors miss out on this one.
These are just a few that homeowners would be eligible to claim on their taxes consult a tax professional for suggestions based on your individual situation. Hopefully this will save you some money at tax time.
Saskatoon real estate agent
Century 21 Fusion