Finding housing, buying a house, landlord/tenant rights.
First Time Home Buyer - Clarification Needed
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user Posts: 130
Posted On: 8/19/2014
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Hi There,
Could you please clarify the question of what is considered 4 years?
I bought a house in 2011 and sold in Nov. 2011 and have not lived in a house that I own since that time.
Does this mean that I am eligible to qualify as a first time homeowner by Nov. 2015?
Or when? would I also qualify for the tax exemption?
Thanks
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Moderator Moderator Posts: 4142
Posted On: 8/19/2014
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Hello,
Thank you for sharing your situation and question with us.
If you are referring to the Home Buyers' Plan (HBP), the program that allows you to withdraw up to $25,000 from your registered retirement savings plans (RRSPs) to buy or build a qualifying home, you can find some information on the Canada Revenue Agency (CRA) Website in the Home Buyers' Plan (HBP) section.
Here is an excerpt,
You have to be considered a first-time home buyer
Generally, before you can withdraw funds from your RRSPs to buy or build a qualifying home, you have to meet the first time home buyers' condition.
You are not considered a first-time home buyer if, at any time during the period beginning January 1 of the fourth year before the year of the withdrawal and ending 31 days before the date of withdrawal, you or your spouse or common-law partner owned a home that you occupied as your principal place of residence.
If, at the time of the withdrawal you have a spouse or common-law partner, it is possible that only one of you will be considered a first-timehome buyer.
However, if you are a person with a disability, or you are acquiring a home for a related person with a disability or helping such a person acquire a home, you may not have to meet this condition. For more information, see HBP Condition - Person with a disability.
For this program , you can determine if you are a first time home buyer by using their Are you considered a first-time home buyer? tool.
If you are referring to the First-Time Home Buyers' Tax Credit (HBTC), you can find some information on the Canada Revenue Agency (CRA) Website in the First-Time Home Buyers' Tax Credit (HBTC) section.
Here is an excerpt,
Am I eligible for the HBTC?
You will qualify for the HBTC if:
- you or your spouse or common-law partner acquired a qualifying home; and
- you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.
If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first-time home buyer. However, the home must be acquired to enable the person with the disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.
You may want to contact the Canada Revenue Agency (CRA) directly for some additional information and for clarification regarding your own situation.
I hope this information is helpful. Please let us know if you have further questions and if there is any follow up to your question/situation.
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Anna
Settlement.Org Content and Information/Referral Specialist, CIRS
Settlement.Org
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