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My mortgage officer friend forwarded this on to me last week.  If you are planing to purchase a first home, there is a little assistance from the government.  She advised me that legal fees and disbursements are deductible if you qualify.

The Fedral budget passed for 2009 introduced a new non-refundable tax credit based on an amount of $5,000 for first-time home buyers who acquire a qualifying home after January 27, 2009 (i.e. the closing is after that date).  The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.

An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years.  A qualifying home is one that is currently eligible for the Home Buyers’ Plan that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence not later than one year after its acquisition.

For full information, visit http://www.budget.gc.ca/2009/plan/bpa5a-eng.asp#3

As I see this, if the government is willing to give a break, it might not move you to buy but for those who are buying anyway, it sure will help.

R. Greg Osmond is a Platinum Award winning Realtor serving St. John’s and surrounding areas, Newfoundland and Labrador for over 20 years and can be reached at 709-895-2500. Visit http://www.rgregosmond.com/ for further information.

 

 

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About the Author: R. Greg Osmond is a Platinum Award winning Realtor dedicated to serving the people of St. John's, Mount Pearl, Paradise, Kilbride, Goulds, Conception Bay South (CBS), Portugal Cove-St. Philips, Torbay- Flatrock- Pouch Cove, and Logy Bay - Middle Cove - Outer Cove, Newfoundland and Labrador. For over 22 years Greg has been practicing in Real Estate. He can be reached at 709-895-2500.

Want to get in touch? Email rgosmond1@gmail.com. For more information, please visit http://www.rgregosmond.com. Thinking of selling your home? I have a passion for helping my clients with buying and selling real estate! If there is any way I can be of service to you today, please feel free to contact me!

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4 Comments on First Time Home Buyer's Tax Credit

MAY
29
2009
205,231 Points 1 Featured Post

I heard they were thinking of introducing this tax credit, but I didn't know they actually did.
I'll have to check on this ... thanks for the info. :)

 

11:30pm • #1
MAY
30
2009
111,792 Points 4 Featured Posts Hit Router

Sylvie,

I had not even heard of it either until my mortage broker friend had mentioned it last week.  I must have been asleep at the wheel on the day it was announced.  I really need to go to bed earlier.

9:46am • #2

Greg,

I wish they would do away with, or temporarily suspend the propertry transfer tax; that's huge.

1:40pm • #3
MAY
31
2009
111,792 Points 4 Featured Posts Hit Router

Terry,  Not sure which tax you refer to.  I know of no federal property transfer tax.  It must be the BC government you speak of in the "they".

7:44am • #4

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Real Estate, St. Johns, Newfoundland R. Greg Osmond, Realtor

St Johns, NL

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Sutton Group-Capital Realty Ltd.

Address: 451 Kenmount Road, St. Johns, NL, A1B 3P9

Office Phone: (709) 726-6262

Cell Phone: (709) 895-2500

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