Get the most out of your home, requires itemizing deductions. Be sure to check with your tax professional to make sure you’re eligible for these exemptions, deductions and credits:
Mortgage interest is the most common tax deduction homeowners think about when putting their tax forms together.
First time home buyer tax credit that you can file on your taxes when filing for CRA and you can claim up to $5,000 dollars, which adds $750 to your tax refund. If you did buy a home in 2020, or you haven't lived in a home owned by you or your spouse in the last four years, you can claim it on this tax.
If you and/or your spouse or common-law spouse are a resident of Canada with qualifying Registered Retirement Savings Plan (RRSP) contributions, one or both of you might be eligible for a tax-free withdrawal toward buying your first home. Under the Home Buyers' Plan (HBP), first-time home buyers or previous homeowners who haven't owned a home within the preceding four years can withdraw up to $35,000 tax-free to use toward a down payment on a home. There is one thing to keep in mind: you have to 'repay' the borrowed amount via RRSP contributions within 15 years, and if withdrawals under the HBP aren't paid back, they'll become taxable. Learn what's involved at the Canada Revenue Agency's (CRA) Home Buyers' Plan page.
Did you pay a Goods and Services Tax (GST) or Harmonized Sales Tax (HST) on a home that was newly built or substantially renovated? You might be able to take advantage of a new housing rebate (a partial refund to someone who has paid too much money for tax, rent, or a utility) on part of the tax.
If either you or your spouse or common-law partner meets the CRA eligibility requirements for a person with disabilities, you may be able to enjoy the Home Buyers' Tax Credit even if you aren't a first-time home buyer.
If you meet one of the following three criteria, the Home Accessibility Tax Credit (HATC) could help you save taxes on an eligible renovation costing up to $10,000:
You're homeowner and you qualify for the disability tax credit
You're eligible to make a claim for a qualifying individual
You're over 65 years old
The renovations have to be permanent, make the home more accessible or reduce the potential harm to the qualifying individual, and be completed by qualified professional tradespeople.
Do you own real estate (including farmland) that you rent out? If so, don't forget to declare your rental income on your taxes. You could claim allowable expenses such as advertising fees, property taxes, insurance, and interest on money you borrowed to purchase or renovate the rental property. You could also claim Capital Cost Allowance (CCA) as a deduction on renovations to your rental property as a depreciating asset. Note, though, that while you can claim the renovation costs in the year they're completed, when you sell the property you might end up paying taxes on the value of the CCA claims via capital gains. Because of this, you'll want to exercise care when writing off anything related to renovating your rental property.the rental income must be reported as income and taxes on the rental income must be paid
When you move more than 40 kilometres away to attend school full time, launch a new business, or take a new job, your moving expenses could be tax-deductible. Moving company bills, hotel bills, and legal fees are just a few of the possible eligible moving costs you could claim.
If you work remotely, these credits might come in handy this tax season. Eligible homeowners could be self-employed, working on commission, or even professionals working from a home office. Typical eligible home office expenses could include a portion of your utility bills, homeowners' insurance, internet bills, office supplies, and so much more. When you're offered money to help you build a strong foundation for your life, why wouldn't you accept it? Taking the time to investigate which homeowners' tax credits you qualify for this tax season could help you keep more of your money in your own pocket. Now you just have to figure out what you're going to do with it.
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