As of the 2018 taxation year, the tax credit for the purchase of a first home is available both at the federal level.
The tax credit for the purchase of a first home is a non-refundable tax credit that aims to help individuals who buy a first home to assume the costs associated with this purchase and to promote access. Ownership by offering tax relief to individuals, who purchase a first residence or who, because of a severe disability, should find a more accessible dwelling. These costs, which include notary fees, taxes and appraisal fees, can be a heavy burden for home buyers, who generally have to make these expenses while keeping cash for their down payment.
Parameters and calculation
An individual can claim the credit for the purchase of a first home if he and / or his spouse have acquired a residence in country. Neither the individual nor his or her spouse or common-law partner has owned another home that the individual occupied in the year of purchase or in the previous four (4) years. It can be an existing dwelling or one under construction. Finally, the individual must plan to use the home as their main place of residence no later than one (1) year after its acquisition. The acquisition of a second home is not covered by the credit.
The value of the credit for the purchase of a first home for the 2019 taxation year is $ 750. For a Quebec individual, taking into account the abatement for Quebec residents, the value of the credit is $ 626. The value of the credit is calculated by multiplying the amount of the credit ($ 5,000) by the lower personal income tax rate for the year (15%). This is a fixed amount regardless of the expenses actually incurred for the acquisition of the residence.
If several people acquire a first home together, they can share the credit, but the total credit cannot exceed $ 750. Also, any unused portion of the credit can be claimed by the individual’s spouse or common-law partner. Unused credit at the end of the year cannot be carried over to another year.
The credit for the purchase of a first home can also be claimed, in certain cases, in respect of the acquisition of a home by an individual entitled to the disability tax credit, or for the benefit of the latter. He does not have to fulfill the condition regarding the purchase of a first home. However, in this case, the acquisition of housing must allow the disabled person to live in a more accessible residence or in an environment better suited to their personal needs and care. In addition, there must be an intention that the home be the main residence of the disabled person in the year following their acquisition. The home can be acquired by a relative (related person) of the disabled person and still be eligible for the credit.
Illustration of Measurement
The amount of the tax credit for the purchase of a first home is fixed; it is neither related to the amount paid for the house nor to the amount of the costs surrounding its purchase. Thus, from the moment the individual is eligible for the credit, the calculation is carried out as provided in the following table.
For example, if you bought a house in 2014, you must not have owned a house since 2009. In addition, people with disabilities are entitled to the CIAPH, even if they have already owned a home. A person with a disability is defined as a person eligible for the disability tax credit. To be eligible, the disabled person must buy the house in order to reside there because it is better suited to their needs.
At the federal level, the tax credit for the purchase of a first home has existed since the 2009 taxation year (for a residence acquired after January 27, 2009). It is part of a package of measures announced in the 2009 federal budget to boost homeownership and home construction, which also included the temporary home renovation tax credit and limit increase of withdrawal under the home ownership scheme  . The credit has not been modified since its introduction.
If you have family members who are disabled, you can buy a home for them and claim the credit for yourself. The residence must be the one that is best suited to the person’s condition. To claim the credit, the person with a disability must be a parent, related by blood, marriage, common-law or adoption, as defined by the Revenue Agency.
To claim this credit, enter the amount of $ 5,000 on line 369 of Schedule 1 to your tax return. For 2014, the 15% tax credit rate means that the actual tax reduction will be $ 750. If you’re federal tax is less than $ 750, your credit will be reduced accordingly since it is a non-refundable tax credit.
You can split it between your tax return and that of your spouse or common-law partner, but the total requested cannot exceed $ 5,000. If you are claiming the credit for a home purchased for a disabled relative, enter the amount on the same line on your tax return. The CRA may ask you to explain your connection to the person with a disability.
Tax credits related to your main home
You can benefit from various tax advantages concerning your principal residence which indicates your usual and effective residence. These are the following tax credits: The tax credit in favor of the energy transition for expenses actually incurred for the energy transition of housing, completed for more than 2 years, which you own, rent or occupy free of charge and which you allocate to your main home. Find the necessary information in the practical brochure. Reductions and tax credits for 2042 and 2042RICI Expenses for the energy transition in the main house;
The tax credit for interest loan taken out for the acquisition or construction of primary residence, deleted for loan deals issued since 1st January 2011. Find all the information necessary in practice brochure. Specials and tax credits for 2042 and 2042RICI Interest on loans for the acquisition of the main dwelling;
The tax credit in favor of assistance to people for the installation or replacement of equipment specially designed for the elderly or disabled in new or old housing as well as for technological risk prevention work and diagnosis prior to this work. Find the necessary information in the practical brochure. Reductions and tax credits for 2042 and 2042RICI> Expenditure on equipment for the main dwelling in aid of assistance to people.
Tax credits linked to a Rental Investment
If you are domiciled in France for tax purposes, you can benefit from a tax reduction for certain rental property investments concerning new or similar housing subject to fulfilling conditions related to the tenant and the rental. As of investments made in 2019, taxpayers not domiciled in France can benefit from the tax reduction if they were domiciled in France on the date of the eligible investment. The tax reduction is granted for the first time in the year of completion of the accommodation or of its acquisition if it is later.