The first-time home buyers’ tax credit (HBTC) is a non-refundable tax credit introduced in 2009 for the first-time home buyers who acquire a qualifying home after January 27, 2009, that is – closing after this date.
Eligibility for the HBTC
To qualify for the the HBTC, you have to meet certain conditions.
How is the HBTC calculated?
The first home buyers’ amount ($5,000) was claimed on line 369 on schedule 1. The HBTC is a non-refundable tax credit. It is calculated by multiplying the lowest income tax rate for the year by $5,000. That means the actual tax saving is $750 for a tax rate of 15%.
The HBTC can be shared
The credit may be claimed by the individual who acquires the home or by that individual’s spouse or common-law partner. The home must be registered in the individual or the individual’s spouse’s or common-law partner’s name in accordance with the applicable land registration system.
If you jointly purchase a home with your friend, either one of you can claim the credit or you can share the credit. But the total of your combined claims cannot exceed $750.