Tax deductions and credits for homeowners

Every year,  tax payers overpay their taxes simply because they fail to claim some of the common deductions and credits they are entitled to.

Before you submit your return this year, check the following list as it represents some available tax deductions and credits for homeowners that are frequently overlooked.

First-time home buyer’s tax credit

If you are buying a home for the first time, you can claim a non-refundable tax credit of up to $750. This  tax credit is based on a percentage of $5,000 and you, your spouse or common-law partner can claim this credit.

GST/HST tax 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.  In Ontario residents may also claim a portion of the HST if they buy, build a new home or do a major renovation on their principal residence.

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.

Medical expenses tax credit

People who have  mobility impairments can claim renovation expenses that will make their home more accessible.   The government provides an extensive list of eligible medical expenses that you can an cannot claim. 

Moving expenses

If you are employed and move within Canada,  and your new location is at least 40 kilometres closer to your workplace,  your moving expenses may be an allowable tax deductible.  Starting a business would qualify, as would moving away from home for your first job. If the deductions are greater than earned income, they can be carried forward for one year to receive the full tax benefit.
Expenses may include hiring movers or renting a van for use to move yourself, storage of furniture, meals and lodging while traveling, legal fees and real estate commissions if you have a home to sell.

Work from home expenses

Is your house part of your business? — a home office for example — you can claim a deduction for the part of the home that is used to conduct your business. If you are a homeowner you can claim a portion of your mortgage interest & property taxes. If you are a renter you can claim a portion of your monthly rent.  Include in your deduction a percentage of the utilities, insurance or home maintenance for the reserved business use area.

Rental income

If you own a property that you rent and claim rental income you may be able to claim allowable expenses such as advertising, insurance and interest on money you borrow to buy or improve the property.

Child care tax credit

In most cases, child care expenses for an eligible child can be claimed by the parent with the lower net income for tax purposes.  If parents are separated and share custody, each parent may usually claim a portion of the child care costs.
Eligible child care expenses include day-care centres,  day nursery schools, some individuals providing child care services, day camps & sports schools.

See more information on what you can deduct, click here.



Richard Thyssen, Broker of Record
Colleen Thyssen, Sales Representative
Direct 519-495-1541
Office 519-438-8000
Email richardthyssen@kw.com
www.thyssengroup.com