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First-Time Home Buyer's Tax Credit
Canadian Tax and
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Line 31270 First-Time Home
Buyers' Tax Credit (HBTC) and
Disability Home Purchase Tax Credit
Note: Before tax year 2019, line 31270 was line 369.
Income Tax Act s. 118.05
A non-refundable tax credit was enacted as part of the 2009
Federal Budget, based on
an amount of $5,000 for first-time home buyers who acquire a qualifying
home after January 27, 2009. The home is considered to be acquired
once it is registered in your name in accordance with the land
registration system or other similar system applicable where it is located
(in Canada). The year of acquisition is the year in which the tax
credit can be claimed. If you missed claiming this credit in the
year of purchase, you can file an adjustment to your tax return. See
our article on Changing Your Tax Return.
The home is considered to be acquired in the taxation
year in which the home is registered in the name of the individual.
As per s. 118.05(2) of the Income Tax Act, "an individual is
considered to have acquired a qualifying home only if the individual's
interest (or for civil law, right) in it is registered in accordance with
the land registration system or other similar system applicable where it
is located. Tax Interpretation 2010-0357201E5 addresses the
situation where a condo buyer occupies the condo in one tax year but is
not registered as the legal owner until the subsequent tax year. The
HBTC is not available until the subsequent tax year.
Note that if a home is gifted to a person, as long as
all other requirements are met, the person can still qualify for the home
buyers' tax credit. The person who gifted the home is deemed to have
disposed of it, and may have to report a capital gain.
The credit is also be available in
respect of a home acquired by an individual who is eligible for the
disability tax credit (DTC), or by an individual for the benefit of a
DTC-eligible relative, if the home is acquired to enable the DTC-eligible
person to live in a more accessible dwelling.
The credit can be claimed by the individual who
acquires the home, or by the spouse or common-law partner of that
individual, or can be split between spouses.
To be eligible for this credit, you must not have lived
in another home owned by you or your spouse or common-law partner in the calendar year of the home
purchase or in any of the four preceding calendar years.