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Do I qualify for new tax credit?

Do I qualify for the first time homebuyers tax credit?

  • My boyfriend and I are buying a new home in February, but he had already purchased a home and received the tax credit in 2007. I was wondering since I never received the tax credit would I be eligible for the tax credit or part of the tax credit? Both of our names will be on the new title and home loan. The catch is we are getting married in June, but I figured since we were purchasing the home before that we should be fine. I keep hearing mixed answers from my real estate agent and my loan officer, and no one seems to have any answers for me. Also since we will have to pay back the first time home buyers tax that my boyfriend had received do we have the choice to pay it back at the $500 per year Original agreement or will we have to pay the full amount up front when we sell the home? Does anyone have websites that can help me out? Any info is greatly appreciated.

  • Answer:

    You are stuck. He bought his house in 2008 (not 2007). The deal then was the $7500 loan that is paid back $500 a year. If he moves out of that house, he has to pay the remaining portion of the loan. (See the current version of the 5405 form.) He cannot keep paying it back. In order for you to be eligible for the $8000 credit, you will have to buy the house BEFORE you get married.

Brianne M at Yahoo! Answers Visit the source

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You mention the first time home buyer credit, and talk about your boyfriend having used it in 2007. I think what you're talking about is the Home Buyer's Plan. That's the plan that lets people withdraw money from their RRSP to use to buy a home, then if the money isn't put back into an RRSP it has to be taken into income over later years. Your boyfriend will have a Home Buyer's Plan balance showing on his Notice of Assessment showing what his balance is, if he has one. The First Time Home Buyers' Tax Credit is new for 2009. You will be able to use it, but not him. Here is info on that: http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html For the Home Buyers' Plan, it depends on your situation if you will qualify for it. He definitely won't. Here is a link to the relevant section in the guide: http://www.cra-arc.gc.ca/E/pub/tg/rc4135/rc4135-e.html#P105_11069. You need to have money in an RRSP in your name to be able to take advantage of the Home Buyers' Plan. If you contact the CRA's General Inquiries Line they will be able to give you a pretty definitive answer after asking you a few questions about your situation. Here is their contact info: http://www.cra-arc.gc.ca/cntct/phn-eng.html

The only way that you will be eligible for this credit is if you purchase the home on your own. Since he received the credit in 2007, he wouldn't be eligible to receive the 2009 credit.

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