Don’t miss out on the new home buyer’s credit

"This is not a credit on a new home but rather a credit for a new buyer of a home - a distinction that is being missed by taxpayers."

This is not a credit on a new home but rather a credit for a new buyer of a home – a distinction that is being missed by taxpayers.

All kinds of “homes” qualify – from single family dwellings to mobile homes to condos.  And the home can be pre-existing or new construction but must be located in Canada – no Arizona retirement residences allowed.  The effective purchase date must have been in 2009 or onward.

For the purchaser to qualify as a “new buyer”, the owner or owners must not have owned a home for the last five years, so for a 2012 home purchase that means the person(s) can’t have lived in an owned home for all of 2008 onward.

And for a 2009 purchase that means not having lived in an owned home for all of 2005.

The five year non-ownership rule is exempted in the case of a purchase of a home by a disabled person who has their life style enhanced by that home.  The disabled person must qualify for the Disability Tax Credit Certificate and take occupancy of the new home within one year of the date of purchase.  By the way, the New Home Buyer’s Credit flows to the actual purchaser so a child of a disabled parent who purchases a home for the disabled parent receives the credit.

So what is this all worth to the purchaser?

It’s based on $5,000 of purchase value with a credit of 15 per cent of that amount applied toward tax liability.  In other words it’s a $750 credit, and it’s a non-refundable credit meaning that only the portion of the credit required to reduce income tax to zero is applicable. The balance is not refunded.

As for paperwork, the completion of the Home Schedule on the tax return is very simple.  If asked by CRA, the owner or owners will have to prove the date of purchase.

However, the required proof of five year non-ownership is unclear.

If you are just hearing of this credit for the first time and you were a new buyer of a qualifying home sometime since 2009, have no fear.

A T1 adjustment can be filed for the year it was purchased.

Ron Clarke has his MBA and is a business owner in Trail, providing accounting and tax services. Email him at To read previous Tax Tips & Pits columns visit www.JBSbiz.netron.

Just Posted

Photo: Trail Times
Trail RCMP start June by nabbing impaired drivers

Latest brief from the Trail and Greater District police

“This is very costly to replace and it seems that Rossland is getting more and more theft and vandalism happening, which is really unfortunate,” says the commission’s Michelle Fairbanks. Photo: Submitted
Two plaques stolen from Rossland heritage square

The plaques were located at Washington and Columbia by the Olaus statue

No matter your age, the city’s two skate park hosts Jaryd Justice-Moote (left) and Brenden Wright can help you roll into a new pastime this “Summer at the Skatepark.” Photo: City of Trail
Free coaching at the Trail Sk8Park begins next month

The city is rolling into a summer of inclusive recreation by, for… Continue reading

Pastor Tom Kline
‘Why I became a Christian’ with Pastor Tom Kline

That night, a peace came over my heart that has remained from that day to this, 36 years later.

Protestors blocking Columbia Avenue Saturday evening. Photo: Betsy Kline
Old growth protesters block Castlegar’s main street for 24 hours

Members of Extinction Rebellion stayed overnight in downtown Castlegar

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Premier John Horgan speaks as provincial health officer Dr. Bonnie Henry, right, and health minister Adrian Dix look on during a press conference to update on the province’s fall pandemic preparedness plan during a press conference from the press theatre at Legislature in Victoria, Wednesday, Sept. 9, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. officials to provide details on Step 2 of COVID reopening plan Monday

Step 2 could allow for larger gatherings and a resumption of recreational travel

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Most Read