First time home buyer and HBTC

Tax Topics
1

Hello everyone

A question has come up regarding “Home Buyers Tax Credit” in the case of joint ownership, the relevant facts are as under:

1 A&B (spouses) owned a home, which they bought in 2017 and sold in 2022.

2 Then A(husband) bought a new home jointly with C (his son) in 2022.

3 A claimed the HBTC on his T1-2017 in full i.e. $5000, while nothing was claimed on b(wife’s) T1 since the max available credit is $750(15% of $5000)

4 Now the A(husband) is not entitled to claim the HBTC for 2022 since he owned a home in the past four years and lived there.

5 Now the question arises whether C(the son) is entitled to the first time home buyers HBTC ($10000) on his 2022 return since he never owned a home in the past and is an eligible first time home buyer.

Besides above any other inputs/benefits on “not claiming” the HBTC for C(the son), are welcome.

Thanks in advance for your valuable inputs.

Thanks and Regards

Chander M,

CA(ICAI), PBA

2

I believe this skipped everyone’s eyes

Considered opinions are welcome.

3

Yes, I believe the son is entitled to the HBTC if he never claimed it before. I have had a few clients in similar situations, and CRA has not yet contested them.

1 Like
4

thank you, and I believe we don’t need to wait for them to chase us.

Other INPUTS will be HIGHLY appreciated.

5

I had a similar situation with newly common-law couple and I concluded it was OK for the spouse who’d never owned a home to claim it. Not been reviewed (yet).

6

Great, thanks for the update.

7

Same… years ago… pre pandemic…never reviewed