{"id":6228,"date":"2023-03-15T08:00:00","date_gmt":"2023-03-15T12:00:00","guid":{"rendered":"https:\/\/www.zolo.ca\/news\/?p=6228"},"modified":"2023-03-15T11:08:06","modified_gmt":"2023-03-15T15:08:06","slug":"homeowner-tax-credits","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/homeowner-tax-credits","title":{"rendered":"Homeowner Tax Credits Every Canadian Should Know"},"content":{"rendered":"\n

It’s time again to complete the dreaded chore of filing your annual income tax return. Homeowners will be relieved to know that they\u2019re entitled to certain tax credits and rebates that can provide tax deductions and save them money. That\u2019s right! Homeowner tax credits are a great way for property owners, the self-employed and real estate investors to save on taxes.\u00a0 <\/span><\/p>\n\n\n\n

So, if you own property \u2014 even if it’s outside of Canada \u2014 or you’re a non-resident who owns property here, be sure to use tax deductions specifically designed to reduce your tax bill.\u00a0<\/span><\/p>\n\n\n\n

Spending extra time researching these tax deductions is always worth it<\/span>. Better yet, sit down with an accountant to ensure you\u2019re not paying higher taxes than necessary. Check out these scenarios and see which applies to you. <\/span><\/p>\n\n\n\n

Canadian Homeowner Tax Credits<\/h2>\n\n\n\n
\"Canada<\/figure>\n\n\n\n

1. First-Time Home Buyers\u2019 Credit
<\/strong><\/h3>\n\n\n\n

If you\u00a0purchased a home for the first time<\/a>\u00a0last year, then Line 369 on your tax return \u2014 the <\/span>first-time home buyers tax credit<\/span><\/a>\u00a0\u2014 is the one for you. This federal credit of $5,000 is designed to make it easier for first-time buyers to enter the housing market. Th<\/span>erefore, you cannot have owned a property in the previous four years and need a qualifying home to be eligible. However, qualifying homes must be registered with you or your common-law partner and must be located in Canada.\u00a0 Joint owners can also split the claim, but the total cannot exceed $5,000 for one property.<\/span><\/p>\n\n\n\n

2. Credits for Energy Efficiency<\/h3>\n\n\n\n

Various federal and provincial tax credits and rebates are available for energy-saving home upgrades<\/span>. Now, this does depend on which <\/span>Canadian province<\/span><\/a> you live in and what upgrades you make. The credits are to encourage homeowners to: install renewable energy, improve insulation and reduce waste. You can also get a rebate on products and appliances that have earned the ENERGY STAR rating. <\/span><\/p>\n\n\n\n

You need an assessment from a certified energy advisor to apply for the credit<\/span>. To receive an EnerGuide energy efficiency home evaluation, you can book an appointment with a service agency within your province. This evaluation costs an average of $400 but can help you earn a rebate of $10,000 or more. Keep in mind some of these upgrades aren’t cheap \u2014 such as new windows or a new furnace.\u00a0 But the suggested upgrades will reduce your energy consumption and could potentially save you over $1,000 annually. \u00a0\u00a0<\/span><\/p>\n\n\n\n

3. Renovation Rebate for Accessibility Reasons<\/h3>\n\n\n\n

Canadians can claim up to $10,000 per year on <\/span>home accessibility expenses<\/span><\/a>. These are renovations homeowners make to ensure a safer or more accessible home for a disabled member of the household.\u00a0 These also apply to seniors aged 65 or over. Renovations could include installing a handrail and grab bars, widening doorways or constructing an accessible shower. Eligible expenses include the plans, permits, materials and fixtures to undertake the renovation.<\/span><\/p>\n\n\n\n

Homeowner Tax Credits for Rental Properties\u00a0<\/h2>\n\n\n\n
\"Renting\"<\/figure>\n\n\n\n

For Canadians who use their properties as rental units, you can deduct many reasonable expenses<\/span> from your income on your tax returns. \u2018Reasonable\u2019 rental expenses you can deduct include mortgage interest, utilities, property tax, repairs and maintenance, and insurance.\u00a0 You can even deduct the cost of driving to the rental property for maintenance reviews or to pick up rental checks. Make sure you check to see what the per-kilometre deduction allowance is for your province. <\/span><\/p>\n\n\n\n

Canadian Tax Credits for People Who Work From Home (Or With Home-Based Businesses)<\/h2>\n\n\n\n
\"remote<\/figure>\n\n\n\n

Homeowner tax credits can be favourable if you work from home.\u00a0 You can <\/span>claim expenses<\/span><\/a> against your income. Eligible expenses include utilities, home insurance, property taxes, office supplies and cleaning products. You cannot deduct mortgage insurance or capital cost allowance (two deductions that are considered business expenses and, if used, can prevent you from claiming the principal residence exemption later on when you sell your home). Keep in mind that the space you use to do work must be a dedicated workspace and used at least 50% of the time for the purpose of conducting work. <\/span><\/p>\n\n\n\n

The great thing about this deduction is that it applies to people with home-based businesses and to employees with home offices<\/span>. However, if you are employed and work from home, ask your employer to fill out and sign a T2200. You won’t have to submit the schedule with your annual tax package, but you must have it on file if the Canada Revenue Agency opts to review your expenses.\u00a0<\/span><\/p>\n\n\n\n

Tax Credits for Canadians Who Own U.S. Or Worldwide Property<\/h2>\n\n\n\n
\"Canadian<\/figure>\n\n\n\n

Some Canadians own U.S. or <\/span>worldwide property.\u00a0 They are liable to pay foreign tax on the net rental income after applicable expenses are deducted. Some of these applicable expenses include mortgage interest, insurance and property management fees. You can also claim a foreign tax credit on your Canadian tax return to reduce your overall tax bill and avoid double taxation (taxation in Canada and the country where your property is located).<\/span><\/p>\n\n\n\n

As a U.S. Or Worldwide Resident Who Owns Canadian Property<\/h2>\n\n\n\n

Canada is a popular place for U.S. and overseas real estate investors to buy and own residential and commercial real estate. If you are a non-Canadian who owns property in Canada and receive an income from these homes, you must <\/span>file a tax return based on obligations<\/span><\/a> such as rental payments or management fees. Tax incentives for these property owners include <\/span>deductions on expenses<\/span><\/a> when purchasing and managing an investment property in Canada. Consider including insurance costs, maintenance and repair costs, professional fees and utilities. <\/span><\/p>\n\n\n\n

While tax time can be hectic and stressful, it’s also a time to find and maximize eligible deductions and tax credits.\u00a0You may be surprised at how much money you can save when all the various deductions are added.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Make sure you\u2019re utilizing these homeowner tax deductions <\/p>\n","protected":false},"author":34,"featured_media":22687,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"guide":[],"class_list":["post-6228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"acf":[],"zolo_excerpt":"","_links":{"self":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/6228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/comments?post=6228"}],"version-history":[{"count":12,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/6228\/revisions"}],"predecessor-version":[{"id":22688,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/posts\/6228\/revisions\/22688"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media\/22687"}],"wp:attachment":[{"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/media?parent=6228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/categories?post=6228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/tags?post=6228"},{"taxonomy":"guide","embeddable":true,"href":"https:\/\/www.zolo.ca\/blog\/wp-json\/wp\/v2\/guide?post=6228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}