Personal Finance

Question re taxes and a first time buyer

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  • Mar 3rd, 2018 7:41 pm
[OP]
Deal Addict
User avatar
Mar 8, 2006
1234 posts
65 upvotes

Question re taxes and a first time buyer

Every year I do my friend’s taxes using ufile. It’s pretty simple...basic income, rrsps and medical. However, last year he purchased a home with one of his siblings. There is no income from this and it is their primary residence. Will this change anything with his taxes? He asked me to do them but I am not sure and I am not an expert on this. Is there anything that needs to be claimed? He has no problem going to a professional accountant but if there is no change I can do them. Thx.
5 replies
Sr. Member
Nov 6, 2015
959 posts
560 upvotes
Guelph, ON
Not a lot. There's a first time home buyer's credit that he should claim (assuming he qualifies). And there's a section to fill in for how much property tax you paid. That's about it from what I remember.
[OP]
Deal Addict
User avatar
Mar 8, 2006
1234 posts
65 upvotes
Thanks Joe.

I did some reading online and came across this on the turbotax site. How would this apply to them? I know that they took out a mortgage and again this is a primary residence with no income.

The following can be eligible for a tax deduction:

The mortgage interest on your primary residence, as well as on a second residence. (There are limits, but relatively few taxpayers are affected.)
The interest on up to $100,000 borrowed on a home equity loan or home equity line of credit, regardless of the reason for the loan.
Deal Addict
Oct 8, 2012
1572 posts
618 upvotes
TBD
boneca wrote: Thanks Joe.

I did some reading online and came across this on the turbotax site. How would this apply to them? I know that they took out a mortgage and again this is a primary residence with no income.

The following can be eligible for a tax deduction:

The mortgage interest on your primary residence, as well as on a second residence. (There are limits, but relatively few taxpayers are affected.)
The interest on up to $100,000 borrowed on a home equity loan or home equity line of credit, regardless of the reason for the loan.
https://loanscanada.ca/mortgage/is-the- ... in-canada/


Bought a home last year. As far as I know theres only the $500 tax credit for buying a new home (assuming qualifications are met).
Deal Addict
Jan 2, 2015
1610 posts
613 upvotes
Toronto, ON
The first time home buyers credit (not to be confused with the RRSP first time home buyers ... whatever) is a credit of $2,500, which gives back $750 (since it's 15%). It can be split between all the homeowners.
boneca wrote: Thanks Joe.

I did some reading online and came across this on the turbotax site. How would this apply to them? I know that they took out a mortgage and again this is a primary residence with no income.

The following can be eligible for a tax deduction:

The mortgage interest on your primary residence, as well as on a second residence. (There are limits, but relatively few taxpayers are affected.)
The interest on up to $100,000 borrowed on a home equity loan or home equity line of credit, regardless of the reason for the loan.
Mortgage interest is not normally deductible in Canada. It is in the US. You can only claim this sort of thing in Canada for the purpose of earning income. You can claim that HELOC interest if you are using that money to invest, but not "just because". I wonder if you're reading the US version of the website. Please post the link.

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