New home Tax rebate

A mother and two daughters bought a home. Mother is not the first-time buyer, but both daughters are first-time home buyers. Do the daughters eligible for the $750 rebate on their tax returns?

The combined claim for new homeowners can’t exceed $750 (between the 2 daughters). Not sure if the mother being a previous homeowner would disqualify the daughters though. Are all 3 names on title?

This is an interesting question because I currently have a client who bought a home with her boyfriend. It’s her first home but not his and they are not common-law spouses yet because they have not been living together for a year. So I am going on the assumption that she is eligible for the home buyers amount but he is not. I can’t find much guidance on this.

I would say it is based on ownership. So if they both bought it, they have to share the credit.

Look under 1st time Home Buyer.

@tome That is for the Home Buyers Plan (borrowing against your RRSP). The Home buyers amount is a non-refundable tax credit.

@rein I agree but the partner doesn’t qualify (not his first home) so she gets it all. Similar to @msbuttar question above where the daughters have to split the credit but the mom doesn’t qualify so she gets none…

Basic question is, if one partner is not a first time home buyer, can the other partner is eligible for the $750 credit?

My mistake…

Who can claim the First-Time Home Buyers’ Tax Credit?

How do you know if you are a first-time homebuyer? The Canada Revenue Agency (CRA) sets out a simple list of requirements that determine who counts as first-time homebuyers. Here’s how to know if you qualify:

  • You or your partner bought a home that qualifies (more on that below)
  • You didn’t live in another home owned by you or your partner in the same year, or any of the four years before

The federal definition of a first-time homebuyer is a little different to the definition used by some provinces, which can make it easier to be eligible for the First-Time Home Buyers’ Tax Credit.

This link talks about the partners. So if we consider the mother and two daughters as partners, in this situation, they are not eligible because they were living in the house owned by the mother. What is the definition of partners? Is it only husband and wife or any two individuals buying together?

According to 118.05(1) the definition of partner is “spouse” or “common law spouse”.

It would seem that if the individual did not live in a another home which they owned in the year of purchase or the 4 preceding calendar years and their spouse or common-law spouse did not live in a home which they owned in the year of purchase or the 4 preceding years (during the time they were married or common-law) the individual is eligible for the credit.

The credit does not need to be shared although it can be shared. Presumably, if one owner qualified and one owner did not qualify for the credit then the individual that does qualify may claim the entire $5,000.

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