Photo credit Maurice Nantel
It’s tax season for 2020 and you want to know, as a homeowner, what tax credits or refunds you may be entitled to. Here’s a rundown.
Purchased your first home in 2020? Then you can claim a non-refundable tax credit. Available at both the provincial and federal governments, this credit is $1,376 and can be shared between eligible persons who purchased the property together.
Are you planning to purchase your first property in 2021? You should know that this tax credit is available to help you cover the costs associated with this purchase. With this money, you can cover notary fees, taxes and evaluation fees. This makes it easier for you to keep cash for your down payment.
If you bought a new home or made major renovations in 2020, you can claim a partial refund of the GST and HST.
There is also a Disability Tax Credit. You do not have to be a first-time home buyer if you qualify for the Disability Tax Credit or if you are purchasing a home for a related person who qualifies for the Disability Tax Credit.
You may also be eligible for a rebate of up to $6,500 if you have upgraded your residential sewage treatment facilities.
As a landlord, you can deduct many rental expenses. In fact, any reasonable expenses you incur for the purpose of earning rental income are deductible. These include expenses for
- Interest and bank charges
- Office expenses
- Professional fees (including accounting and legal fees)
- Management and administrative expenses
- Repairs and maintenance
- Wages, salaries and benefits
- Property taxes
- Travel expenses
- Motor vehicle expenses
- Other rental expenses
- Prepaid expenses
We hope this short summary is helpful, but remember, the best person to advise you is your accountant!
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