Tuesday 24 March 2015

First-time buyers should seek an eligible tax credit

Federal and provincial rebates on taxes paid available for new home owners
Lots of good info dealing with a home purchase discovered at www.royallepage.ca 
By Mark Schadenberg
I'm the first to admit and agree, the Canada Revenue Agency (CRA) has certainly made filing your income tax a burdening process.
You must consider deductions, percentages, allowable benefits, charitable receipts, advertising expenses, HST forms . . . the list goes on and on.
However, there is good news for first-time home buyers in the 2014 calendar year as you will be eligible to claim back some dollars on your tax form when you submit.
Watch the video and certainly fully read the link below, but two items are important – you qualify based on your income, and that both you and your partner are first-time buyers. The credit could be as high as $750 when you submit your tax return. You can qualify if you have not owned a home in the previous five years.
Credits are also available for anyone buying a home for a disabled person. The dwelling bought must be fully accessible.
Look for 'Line 369' on your tax form. If you're a first-time home buyer you should consult with your tax specialist to fully understand the federal government mathematics, and certainly study the websites below.



ANOTHER POSSIBLE REBATE
In Ontario, we also pay Land Transfer Tax on a home purchase and there is a possibility to claim some or all of that cash back as well from province's Ministry of Finance.
The maximum possible tax credit is $2,000.
I present some of these options because I realize first-time home buyers (all home buyers actually) must borrow from family just to make their dream of becoming a home owner a reality. It certainly is one reason to purchase a house in November or December as the tax return season is obviously much closer.
I believe Land Transfer Tax is a necessary expense in purchasing a house (approximately one percent of purchase price) and that all buyers must do their math and talk to their lending institution before waiving their 'condition on financing' in their offer as 'closing costs' on a house can grow quite high when you consider down payment, plus also consider the moving truck, some new appliances or furniture, high-ratio mortgage insurance, appraisal and inspection costs, immediate home improvements required, and lawyers' fees.


ROYAL LEPAGE
I have noted in previous posts that the best place to receive real estate information is through a website designed just for that – to provide unbiased complete information. In other words there is no salesmanship involved, such as a lending institution brochure or an online service.
Therefore, both the Canadian Mortgage & Housing Corporation (CHMC) and , along with unbiased newspaper and magazine articles are a good destination for searching and learning. Reading too much from Toronto newspapers, however, and the well-respected lawyer Mark Weisleder could intimidate you as you might be overwhelmed with Toronto thoughts (multiple offers, etc), prices and stats.
If all you're looking for is the basic fast facts about the house buying process before sitting down with me and creating a game plan, a good one-stop for advice and hints truly is www.royallepage.ca
Our national website has a section on introductory tips for home buyers and home sellers. For buyers looking for quite a change in lifestyle there is a section discussing specialty properties, including green living (solar panels, etc) or possibly making a purchase in the U.S. south to avoid our wonderful winters.



LINKS:
http://www.fin.gov.on.ca/en/refund/newhome/
www.markroyallepage.blogspot.com


Mark Schadenberg, Sales Representative
Senior Real Estate Specialist (SRES designation)
Royal LePage Triland Realty
757 Dundas St, Woodstock
www.wesellwoodstock.com
(519) 537-1553, cell or text
Email: mschadenberg@rogers.com
Twitter: markroyallepage
Facebook: Mark Schadenberg, Royal LePage Triland
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1 comment:

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