Homeowner? Don’t Overlook These Home Tax Deductions/Credits For 2018!
Tax season is just around the corner. While it might not always end with extra cash in your pocket. There are many ways that Ontario homeowners can take advantage of credits and deductions.
As you’re putting together your paperwork and getting ready to file your 2017 taxes. Please don’t forget to see if you qualify for these deductions.
First-Time Home Buyer’s Tax Credit
If this is your first time buying a home, you, your spouse your common-law partner can claim a non-refundable tax credit. This new non-refundable tax credit is based on a percentage of $5,000.
Medical Expenses Tax Credit
If you have a mobility impairment, you can claim renovation expenses to make their home more accessible. The government provides an extensive list of eligible medical expenses as well as medical expenses that you cannot claim so don’t overlook these!
Home Accessibility Tax Credit (HATC)
Renovations that make homes safer or more accessible for seniors or the disabled could potentially qualify for a tax credit. If you’re a senior, hold a valid disability tax certificate or are supporting a qualifying individual, up to $10,000 in expenses can be claimed under the HATC.
GST/HST Rebate (New Housing Rebate)
If you buy a new home as your principal residence and if it’s less than $450,000, you may be able to claim the GST/HST new housing rebate. Ontario residents may also claim the provincial portion of the HST if they buy, build or do a major renovation on their principal residence. Other deductions exist for homes that are built by the owner as well as for residential rental properties so do your research if this applies to you.
Rental Income
If you rent a property that you own or that you have use of, use the T776 form to report rental income and claim allowable expenses such as advertising, insurance and interest on money you borrow to buy or improve the property.
Home Buyer’s Plan
The Home Buyer’s Plan allows you to withdraw up to $25,000 from your registered retirement savings plan (RRSP) to help with the purchase or construction of a home. Certain conditions apply but you can submit a request by completing the T1036 form.
Selling A Home
Generally, the GST/HST doesn’t apply when you sell your home. However, there are cases where it does. For example, if you built the home, you may have to pay the GST/HST. If the home you sell is not your principal residence, you have to report the capital gains. You’ll also want to look into moving tax deductions that may pertain to your individual circumstances.
Working from Home?
If you work from home, there are a number of expenses that you can deduct if you are either self-employed, a commissioned employee or a professional. Some of these expenses include home insurance, utilities and cleaning materials so be sure that you’ve accounted for everything.
Provincial Credits
Ontario homeowners can apply for the Ontario property tax credit and the Senior Homeowner’s Property tax credit.
Check out what the government has to say right here https://www.ontario.ca/page/ontario-tax-credits-and-benefits
