GOVERNMENT home buyers programS The 2009 Canadian Federal Government offers several incentives for homebuyers, which we believe your clients should know about. FOR FIRST TIME HOME BUYERS: Canada's Government introduces financial help for first-time home buyers. Canada's Economic Action Plan supports the Canadian home construction and real estate industries, with a First-Time Home Buyers' tax credit that will provide up to $750 in tax relief to first-time home buyers; and an increase in the amount that they can withdraw from an RRSP to purchase a home from $20,000 to $25,000. For more information see: www.actionplan.gc.ca First-Time Home Buyers' Tax Credit (HBTC): To assist first-time home buyers with the costs related to the purchase of a home, Budget 2009 proposes to introduce a First-Time Home Buyers’ Tax Credit. A 15-per-cent credit will be applied to a $5,000 amount, and will provide up to $750 in tax relief to reduce the costs associated with first home purchases completed after January 27, 2009. For more information see: http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html First Time Home Buyers’ Program - Property Transfer Tax Act: It is important that the client understand all requirements of the FTHB program, including changes announced in Budget 2008 that became effective February 20, 2008. Please see: http://www.sbr.gov.bc.ca/documents_library/bulletins/PTT_004.pdf to find out more. FOR EVERYONE: Home Renovation Tax Credit: Home Renovation Tax Credit (HRTC) will provide a temporary 15 per cent income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010. The credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief. |