TAX TIP Did you buy, build, sell or renovate a home in 2021? Here's what you need to know
Friday, 01 April 2022 10:22.AM
If you bought, built, sold or renovated a home in 2021, we're here to help you with your tax affairs. Here are some helpful tips and information to get you ready for this tax-filing season.
Claim $5,000 on your tax return: The home buyers' amount (line 31270) is available if:
• you (or your spouse or common-law partner) acquired a qualifying home in 2021; and
• you did not live in another home that you or your spouse or common-law partner owned in the current year or any of the previous four years.
You and your spouse or common-law partner (or another individual you acquired the qualifying home with) can split the claim, but the combined total cannot be more than $5,000. When more than one person is entitled to the amount (for example when two people jointly buy a home), the total of all amounts claimed cannot be more than $5,000. Claiming this amount can result in a non–refundable tax credit of up to $750.
If you are eligible for the disability tax credit (DTC) or are purchasing the home for the benefit of a related person with a disability, the limitation mentioned in the second bullet above does not apply. The purchase must be made to allow the person with the disability to live in a home that is more accessible, more mobile or functional, or better suited to their needs.
Claim the GST/HST new housing rebate: You may be able to claim a rebate for some of the GST/HST you paid to:
• buy a newly built house (building and land) from a builder to use as your primary place of residence;
• build a new house to use as your primary place of residence;
• substantially renovate a house to use as your primary place of residence.
Please note that as a purchaser, you should ensure that you have not already been credited the new housing rebate by your builder as part of your Purchase and Sale Agreement.
Claim home accessibility expenses: You may be able to claim eligible renovation expenses. The renovations must have been made to allow a qualifying individual to gain access to, or to be mobile or functional within the home or, to reduce the risk of harm to the qualifying individual within the home or when accessing the home. You can claim these expenses if one of the following applies:
• you are a qualifying individual, meaning you are 65 years of age or older at the end of 2021 or, you are eligible for the DTC;
• you are an eligible individual that can claim certain tax credits for a qualifying individual.
If you plan to buy or build a home, you may be able to:
Withdraw up to $35,000 from your registered retirement savings plan (RRSP): You may be able to use the Home Buyers' Plan (HBP) if:
• you're a first-time home buyer (not required in certain cases – see below); and
• you will use the home as your principal place of residence within one year of buying or building it.
This plan lets you take money out of your RRSP to buy or build a home for yourself. You have up to 15 years to repay the total amount to your RRSP. Any amount that is not repaid will be added to your income in the year that it is due.
If you are eligible for the DTC, you do not have to be a first-time home buyer to use the HBP. This also applies if you are helping a relative who is eligible for the DTC to buy or build a home. The purchase or construction must be done to allow a person with a disability to live in a home that is more accessible or better suits their needs.
You might also be able to use the HBP following a breakdown of a marriage or common-law partnership where you might not otherwise qualify as a first-time home buyer.
Selling a property
If you sold a property in 2021, you need to:
Report the sale: If you sell a property—even if it is your principal residence—you have to report the sale on your income tax and benefit return for the year you sold the property. How you report depends on what type of property you sell.
Designate the property (if applicable): If you sell your principal residence or are deemed to have disposed of it, you do not usually have to pay tax on any gain from the sale. This is because of the principal residence exemption. Starting with the 2016 tax year, the Canada Revenue Agency (CRA) allows the principal residence exemption only if you report the disposition and designation of the qualifying property as your principal residence on your income tax and benefit return.
If you didn't report the sale and designation of your principal residence in these years, you need to change your return and file a late designation for the related year as soon as possible. The CRA will be able to accept a late designation in certain circumstances, but a penalty may apply.
If you sold a property that was not your principal residence (such as a rental property or a property that you flipped) or was not your principal residence for every year that you owned it, you need to:
Report the gain or profit you made: Your intention matters when you buy a property. You may owe tax on any resulting gain or profit if:
• you bought a property mainly to sell it or rent it out; or
• it was a secondary property and not your principal residence.
For information on reporting real estate income go to our report your real estate income web page.
-
Related materials:
- 19-Nov-2024 02:30 PM 📒🇨🇦🍁 Businesses, Are You Ready For Your CRA Mail To Go Online? 💵
- 18-Sep-2024 10:23 AM 📒🇨🇦🍁 Using an App or Website to Earn Income? Here's What You Need to Know About the Reporting Rules for Digital Platform Operators 💵
- 16-Sep-2024 12:00 PM 📒🇨🇦🍁 Making Changes to Your Business? The Canada Revenue Agency is Here to Help! 💵
- 18-Jul-2024 04:58 PM 🍁🏙️💵 City Of Toronto's Tax & Utility Relief Programs Provide Support for Low-Income Seniors and Low-Income People Living with Disabilities
- 21-Jun-2024 06:40 PM 📒🇨🇦🍁 Budget 2024 Government of Canada Launches the First Clean Economy Investment Tax Credits 💚💵
- 16-Jun-2024 10:27 AM 📒🇨🇦🍁 You've Got Questions and We've Got Answers! Here are Answers To Seven of the Top Business Tax Information Questions
- 10-May-2024 04:33 PM 📒🇨🇦🍁 Looking for the Fastest and Easiest Way to View and Manage Your Business Taxes Online? Use Our Digital Services!
- 02-May-2024 06:23 PM 📒🇨🇦🍁 Need to Change Your Tax Return? You Can Do it Online!
- 24-Apr-2024 10:21 AM ⚕️💵🚬 Canadian Cancer Society Commends Tobacco Tax And E-Cigarette Tax Increases In Federal Budget 🚭
- 23-Apr-2024 04:28 PM 💵 New Canada Carbon Rebate Estimator Tells You How Much You May Get Back in Payments Starting April 15
- 20-Apr-2024 02:33 PM 📒🇨🇦🍁 The Canada Revenue Agency Has Options for You if You Owe Us Money or Have a Debt That We Collect for Another Government Department
- 19-Apr-2024 06:33 PM 📒🇨🇦🍁 Top 10 Tips for Your Platform Economy Tax Obligations
- 19-Apr-2024 04:24 PM 📒🇨🇦🍁 Reporting Your Capital Gains as a Crypto-Asset User
- 19-Apr-2024 02:34 PM 📒🇨🇦🍁 Are You Self-Employed? The Canada Revenue Agency Can Help You Understand Your Tax Obligations
- 18-Apr-2024 10:19 AM 📒🇨🇦🍁 NEW - Bare Trusts are Exempt from Trust Reporting Requirements for 2023
- 16-Apr-2024 02:27 PM 📒🇨🇦🍁 You Still Have Time - Last-Minute Tips to Help You File Before the Deadline!
- 01-Apr-2024 08:00 AM 💵 Keep The Cash, Care for Climate: Canada Carbon Rebates Being Paid Next Month
- 28-Mar-2024 10:33 AM 📒🇨🇦🍁 Vast Majority of Canadian Businesses Want Fast-Tracking of Clean Energy Tax Credits 🤝💰🤑
- 21-Dec-2023 02:37 PM 📒🇨🇦🍁 Businesses: Here Are the Top Changes this Year that Will Affect Business Taxes in 2024
- 19-Oct-2023 12:00 PM 📒🇨🇦🍁 Did You Know that there are Business Services that Can Make it Faster and Easier for You to Meet Your Tax Obligations?
- 14-Oct-2023 06:33 PM 📒⚠️ Warning: Watch Out for Tax Schemes Involving Multilevel Marketing Businesses!
- 20-Jul-2023 10:21 AM Taxpayers' Ombudsperson Requests That the Canada Revenue Agency Make Improvements to Respect Canadians' Right to Be Represented by a Person of Their Choice
- 05-Jul-2023 02:34 PM TAX TIP Get ready: the CRA is in its summertime benefit period!
- 19-Jun-2023 02:23 PM TAX TIP Applying for the Disability Tax Credit is Easy With Our New Digital Form
- 13-Jun-2023 02:46 PM TAX TIP June 15, 2023, is the Deadline for Self-Employed Individuals to File Their 2022 Income Tax and Benefit Return
- 18-May-2023 12:00 PM ONTARIO JOBS 💵 Moving Forward with Building a Strong Ontario
- 03-Apr-2023 04:33 PM TAX TIP CRA Debt Recovery Activities May Impact Upcoming Benefit, Credit, and Refund Payments
- 27-Mar-2023 10:21 AM TAX TIP Voices Prepares Voice Actors for Tax Season With Tax Education Campaign
- 26-Mar-2023 02:23 PM TAX TIP Valuing Your Cryptocurrency
- 23-Mar-2023 10:21 AM TAX TIP The CRA Would Like to Remind You That it Has Resumed Debt Recovery Activities; Here's How it May Impact Your Benefit, Credit, and Refund Payments
- 21-Mar-2023 02:33 PM TAX TIP 💵🏠 Less Than Two Weeks to Apply For $500 One-Time Top-Up
- 21-Mar-2023 12:00 PM TAX TIP Do You Work in the Sharing Economy? Here's What You Need to Know
- 18-Mar-2023 10:15 AM TAX TIP Confirm My Representative is Now Available for Business Owners
- 14-Mar-2023 08:20 PM TAX TIP Thinking of Calling Us? Before You Do, Find The Answers You Need for Tax-Filing Season!
- 12-Mar-2023 08:29 PM TAX TIP Ready to File Your Taxes? Here's Why You Should Go Digital
- 13-Feb-2023 02:22 PM TAX TIP Were You Invited to File Your Taxes Over the Phone?
- 09-Feb-2023 08:00 AM TAX TIP Electronic Filing Of Special Elections And Returns Is Now Available
- 30-Jan-2023 06:40 PM 📒🇨🇦🍁Taxpayers' Ombudsperson Recommends Ways To Improve Communication From The Canada Revenue Agency
- 24-Jan-2023 04:18 PM TAX TIP Seniors: We've Got Tips To Help You This Tax Season!
- 19-Jan-2023 04:28 PM TAX TIP Here's what you need to know if you're filing your taxes by paper
- 16-Dec-2022 02:39 PM Budget 2021 The Government Of Canada Launches Formal Consultations To Streamline Reporting Of Payroll Information
- 04-Nov-2022 10:43 AM TAX TIP Six month doubling of GST credit payment starts November 4, 2022
- 03-Sep-2022 10:22 AM Government of Canada Strengthens Access to Sexual and Reproductive Health Services for Youth
- 25-Aug-2022 02:20 PM TAX TIP Do You Have Questions About Filing As A Business For The First Time? The CRA Is Here To Help
- 05-Aug-2022 08:00 AM TAX TIP Here Are Answers To Five Of The Top Business Tax Information Questions
- 16-Jul-2022 08:00 AM TAX TIP Do you have questions about filing as a business for the first time? The CRA is here to help
- 21-Jun-2022 11:14 AM City of Toronto issues 2022 final property tax bills
- 03-Jun-2022 08:00 AM TAX TIP June 15, 2022, is the deadline for self-employed individuals to file their 2021 income tax and benefit return
- 17-Apr-2022 08:00 AM TAX TIP Businesses: Protect yourself from scams and fraud - know what to expect from the CRA
- 15-Apr-2022 02:22 PM TAX TIP Are you self-employed? The Canada Revenue Agency can help you understand your tax obligations
- 13-Apr-2022 12:00 PM TAX TIP How to find help if you can't pay your taxes
- 28-Mar-2022 02:02 PM TAX TIP Make sure you maximize the benefits you are entitled to if you are First Nations, Inuit, or Métis
- 27-Mar-2022 12:00 PM TAX TIP It's tax time! You've got questions? We've got answers
- 26-Mar-2022 10:59 AM TAX TIP Do you work in the gig economy? Here's what you need to know
- 23-Mar-2022 04:22 PM TAX TIP How to verify the CRA has contacted you
- 21-Mar-2022 04:33 PM TAX TIP Do you work in the sharing economy? Here's what you need to know
- 20-Mar-2022 04:46 PM TAX TIP Making changes to your business? The Canada Revenue Agency is here to help!
- 19-Mar-2022 10:23 AM TAX TIP Are you a peer-to-peer seller? Here's what you need to know
- 17-Mar-2022 08:38 PM TAX TIP Are you a social media influencer? Here's what you need to know
- 15-Mar-2022 12:00 PM TAX TIP Before you call: Find the answers you need for the 2022 tax-filing season
- 10-Mar-2022 10:22 AM TAX TIP Small and medium business audits: What you need to know
- 11-Feb-2022 12:00 PM TAX TIP Avoid last minute delays at tax time by setting up My Account
- 07-Feb-2022 02:27 PM TAX TIP Investing in cryptocurrency
- 27-Jan-2022 06:33 PM TAX TIP What is cryptocurrency?
- 25-Jan-2022 12:00 PM TAX TIP Running a business is difficult; understanding your tax obligations
- 30-Nov-2021 08:00 AM TAX TIP Avoid last minute delays at tax time by setting up My Account
- 17-Nov-2021 02:14 PM TAX TIP Understanding the tax-free savings account (TFSA)
- 04-Nov-2021 04:33 PM TAX TIP Canada Revenue Agency announces maximum pensionable earnings for 2022
- 20-Jun-2021 05:33 PM TAX TIP Businesses: Watch out for Canada Emergency Wage Subsidy tax schemes
- 02-Dec-2020 12:00 PM TAX TIP What you should know during times of financial uncertainty
- 01-Sep-2020 02:03 PM TAX TIP Warning to Ontarians: Don't be fooled by the senior homeowners' property tax grant
- 30-Aug-2020 09:07 AM TAX TIP Last call! File your 2019 tax return to keep getting your benefit payments
- 29-Aug-2020 12:02 PM TAX TIP Watch out for offshore leveraged insured annuity schemes
- 28-Aug-2020 05:14 PM TAX TIP Watch out for offshore disability insurance plan schemes
- 13-Mar-2020 10:23 AM TAX TIP New online feature helps you see your uncashed tax cheques