While owning a home is one of the best investments you can make, it is still an expensive endeavor. The Canada Revenue Agency has tried to make this easier on Canadians by offering several tax deductions specifically for homeowners. Whether you’re a first-time homeowner or you’ve owned your home for years, make sure you don’t miss out on these great tax deduction opportunities:
First-time home buyer’s tax credit
This tax credit of up to $750 is only available for first-time homebuyers and is based on a percentage of $5,000.
Renovations for mobility purposes
Persons with mobility impairments can claim expenses for renovations that make their homes more accessible.
New home rebate
If your new home cost less than $450,000 (or you did extensive home renovations) you may be able to claim the GST. There is a similar rebate for anyone who bought, built, or renovated a rental property.
Home Buyer’s Plan
This rebate allows you to withdraw up to $25,000 from your RRSP to help purchase a new home. You can then take up to 15 years to pay it back, penalty-free.
Rental income
If you rent out a property that you own, you can claim certain expenses such as insurance, advertising, or interest on money used to purchase or renovate the property.
Working from home
If you work from home you may be able to claim expenses such as home insurance, electricity, or heating.
There are also several tax deductions specific to the province of residence. Home-ownership is a sound investment, but don’t overlook something that can earn you even more value. Contact or visit Liu & Associates today and consult with our experts to find out if there are even more deductions that you might be eligible for.