Personal Finance

filing taxes, first year home owner

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Deal Addict
Feb 17, 2012
1817 posts
531 upvotes
ORLEANS

filing taxes, first year home owner

What house bills are tax deductible? i know property tax, enbridge, hydro, city water. is there anything else? what about home insurance?
8 replies
Deal Addict
Jun 18, 2018
1465 posts
913 upvotes
Toronto
House bills are not tax deductible unless you are renting it out. What you're probably referring to is OEPTC which is more for low- to moderate-income Ontario residents
Deal Fanatic
User avatar
Jun 13, 2010
5135 posts
5999 upvotes
GTA
Palidino wrote: What house bills are tax deductible? i know property tax, enbridge, hydro, city water. is there anything else? what about home insurance?
Yes to property tax but it doesn't lower your tax owed if you make over a certain income. No to utilities and home insurance for most people.
Sr. Member
Apr 16, 2015
767 posts
1069 upvotes
Expenses relating to your home (property tax, utilities, insurance, etc.) are not generally tax deductible, but there are some exceptions:
- if they count as business expenses (i.e. renting out the property or using a home office for self-employment)
- certain provincial credits or benefits such as the OEPTC in Ontario for low-middle income taxpayers (https://www.canada.ca/en/revenue-agency ... tario.html)
- home office for employment in very limited cases (expanded somewhat during COVID)
Deal Addict
User avatar
Feb 1, 2012
1931 posts
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Thunder Bay, ON
When preparing your taxes, in Ontario Tax Credits you apply for the Trillium Benefit, which consists of Ontario Sales Tax Credit, Ontario Energy and Property Tax Credit, and, if you live in Northern Ontario the Northern Ontario Energy Credit. Then you add a declaration for Property Tax Paid. All of this will factor into a calculation for the Ontario Trillium Benefit.

If you are over 65 you can also apply for the Ontario Senior Homeowners' Property Tax Grant, also under Ontario Tax Credits. Seniors may also apply for Home Accessibility Expenses for expenditures to make a home more accessible, which is under Medical Expenses.

For low income people and seniors there may be credits available for property tax, water and electricity, but those get applied for at the municipal level, not on you income tax.
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Newbie
Oct 12, 2021
5 posts
Hi,
I have sold my house in Dec 2021 and bought a new house at the same time. Now I am filing my Tax return of 2021 next month.
Kindly let me know, is there anything, by which,I can save some money,please. Me and my wife are 64 years old and filing tax together,in
Mississauga ON.
Member
Apr 22, 2010
231 posts
91 upvotes
Toronto
malik44 wrote: Hi,
I have sold my house in Dec 2021 and bought a new house at the same time. Now I am filing my Tax return of 2021 next month.
Kindly let me know, is there anything, by which,I can save some money,please. Me and my wife are 64 years old and filing tax together,in
Mississauga ON.
Have you always lived in your old house before you sold it? If so, then it's considered principal residence and no taxes are required to be paid on the sale. You do have to designate the sold house though, see information on CRA website: https://www.canada.ca/en/revenue-agency ... state.html

Since this is your second home, then first time home buyers tax credit is not applicable to you.
Deal Addict
Oct 23, 2017
2485 posts
2016 upvotes
GTA West
Palidino wrote: What house bills are tax deductible? i know property tax, enbridge, hydro, city water. is there anything else? what about home insurance?
It sounds like you are in for a surprise. In general, none of those things are deductible in Canada when paying your taxes. Unless, you have a very low income and/or are a senior and can take advantage of certain Ontario government programs that others have mentioned, for tax and energy costs. But if you have enough money to pay a mortgage you are unlikely to be in that category.

Someone mentioned working from home and claiming part of your house as an expense. I tried that one year and got something like $85.
Deal Addict
Nov 6, 2015
1056 posts
630 upvotes
Guelph, ON
Palidino wrote: What house bills are tax deductible? i know property tax, enbridge, hydro, city water. is there anything else? what about home insurance?
I don't know about other provinces, but in Ontario gas, hydro, water and other utilities are not deductions unless you are running a business from your house, and even then you can only use a % which is equal to how much of your space is devoted to the business. In general, homes have little impact on income tax, which makes sense since you also don't pay capital gains tax on your principal residence (hence, there's no "income" to deduct against your "expenses").

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