It’s Tax Time: Leverage These Home Owners Credits to Help Pay Down Your Mortgage
Tax time is here, and for many Canadians this means finding as many ways as possible to save money. If you’ve been pulling change out from under the couch cushions to pay your mortgage, it may help to take advantage of various tax credits that the government has made available to home owners. You may not have the best mortgage rates Canada has to offer, but these tax credits will ease the burden
Ontario Property Tax Credit
If you are an Ontario home owner or renter, you may be eligible for the Ontario Property Tax Credit. This tax credit serves low-to-average income individuals whose primary residence is a rented or owned property in Ontario. The tax credit amount is equal to the amount of property tax the owner has paid, or 20 percent of the cost of rent for tenants. The minimum amount is $250 for those under 65 years of age, or $625 for those over 65. The tax credit cannot exceed the cost of occupancy, and will not be more than $1,025 for seniors, or $900 for adults. You may claim multiple properties if the occupancy periods do not overlap. For instance, you can claim one property from January to June and another property from July until December, but you cannot claim two properties for the month of June.
British Columbia Home Renovation Tax Credit
For B.C. residents who have had renovations done in the last year, this tax credit applies to home renovation expenditures between $1,000 and $10,000. Eligible renovations include kitchen, bathroom or basement renovations, putting in a new floor, painting the interior or exterior of the house, or installing better insulation. Essentially, any activity done to improve the house itself is eligible for the tax credit, whether the homeowner or a contractor does the work. It is possible to combine this tax credit with an ecoENERGY RetroFit grant (up to $5,000) if the renovation is intended to improve the home’s energy efficiency. The government allows each family one Home Renovation Tax Credit per tax year. You can claim renovations done on multiple homes, but the most any family will be able to claim is $1,350.
This tax credit, administered by the federal government, is available to Canadian citizens who have purchased a home (or apartment, or townhouse, or duplex) after January 27th 2009, and did not own a primary residence during the year in which the home was bought or any of the four preceding years. If the homeowners are a married couple, either or both spouses can apply for the tax credit; however, the combined claim must not exceed $750. You can claim this tax credit on Line 369 of your personal income tax return for the tax year in which you purchased the home
These three tax credits are only a few of the various credits and deductions available to Canadian homeowners. If you want to make your taxes work for you to offset your mortgage and get the best mortgage rates Canada has to offer, check out the Canada Revenue Agency website for a full list of tax credits and deductions. Canadian homeowners can save a great deal of money by taking advantage of the available tax credits, and this is money that can be put toward a mortgage