How your home can save you at tax time

Tax season is in full swing, and how to get the most out of the process is top of mind for most Canadians. While the cost of a home is not tax deductible, there are several ways being a home owner can lead to a bigger tax refund.

• To sell a property for a profit and avoid paying taxes on the capital gains, ensure only one property is designated as a principal residence.
• First-time buyers can withdraw up to $25,000 from a registered retirement savings plan (RRSP) tax free and repay over 15 years.
• First-time buyers are eligible for the first-time buyer tax credit, which was introduced in 2009 by the federal government.
• Certain home expenses such as mortgage interest, property taxes, utilities and maintenance can be claimed if the residence is used for business.
• A portion of home costs can be claimed if a room or part of the house is rented out, and the home is still considered a principal residence.
• Moving expenses, the cost of selling a previous residence, mortgage penalties and vehicle fuel and maintenance can be deducted when moving over 40 km to be closer to work or school.
• Renovation costs to accomodate mobility issues can be deducted as long as the medical expense reimbursements fall within a 12 month period that ends in the current tax year.

For more information on utilizing owning a home to maximize a tax refund, contact an Ottawa Mortgage Broker.

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