01/18/2025
7 Housing-Related Tax Savings for 2024 Filing Season
With the 2024 tax season approaching, here are key housing-related tax savings Canadians should know:
1. Home Buyers’ Plan (HBP)
Save up to: $60,000 tax-free withdrawal from your RRSP.
For: First-time homebuyers or those buying for a disabled person.
Details: Repayment begins in the 5th year after withdrawal; must intend to live in the home within a year.
2. First Home Savings Account (FHSA)
Save up to: $8,000/year (lifetime limit: $40,000). Contributions are tax-deductible, and growth is tax-free.
For: First-time homebuyers.
Details: Tax-free withdrawals for qualifying homes. Can convert to an RRSP/RRIF if unused.
3. Home Buyers’ Amount
Credit: Up to $1,500 on your tax return.
For: First-time homebuyers (or eligible for the Disability Tax Credit).
Details: The claim can be split with a spouse or partner.
4. Home Accessibility Tax Credit
Credit: Up to $3,000 for $20,000 in eligible renovation expenses.
For: Canadians aged 65+ or eligible for the Disability Tax Credit.
Details: Renovations must improve accessibility or reduce harm risks.
5. Multigenerational Home Renovation Tax Credit
Credit: 15% of renovation expenses, up to $7,500.
For: Creating a secondary unit for someone 65+ or eligible for the Disability Tax Credit.
Details: Covers materials, labor, and permits, but excludes recurring maintenance or appliances.
6. GST/HST New Housing Rebate
Rebate: Part of GST/HST for qualifying new or substantially renovated homes.
For: Buyers of new builds, co-op shares, or those building/renovating homes under $450,000.
7. Principal Residence Exemption
Save: Capital gains tax on the sale of your primary residence.
For: Sellers of their primary residence.
Details: Report the sale on your return. Flipping homes within 12 months may disqualify exemptions unless for life events.
Consult a tax professional to maximize your savings!