Tax knowledge of immigrating to Canada to buy real estate

When buying Canadian real estate after immigrating to Canada, many buyers have a headache about higher taxes. But do you know that the house you live in every day can also bring you a lot of tax breaks? Read the following carefully to see if you have made good use of the following housing tax relief items? Tax relief for first-time home purchase

(first home purchase? Tax credit)

When buying a house in Canada for the first time, 750 yuan can ask for the most tax relief.

This new tax relief has been implemented since 2009. The calculation method of tax relief is: multiply 5,000 yuan by the lowest personal income tax rate of that year (15% in 2009), and the amount obtained is the tax relief for the first house purchase in that year.

To get this tax relief, the applicant must meet two conditions at the same time:

1. The property was purchased by you, your spouse or your de facto marriage partner;

2. In the year when you bought a house and in the past four years, you didn't live in the property owned by yourself, your spouse or your de facto marriage partner.

The amount of tax relief that a property can apply for does not exceed that of 750 yuan.

Tax relief of medical expenses

(Medical expenses tax credit)

Some people with mobility difficulties will buy some medical equipment or instruments to make the house more convenient for their activities. This fee can be applied for tax deduction of medical expenses in Canada.

The Canadian government has provided a detailed list of equipment or instruments that can apply for tax relief for medical expenses, including acoustic couplers, infant respiratory monitors, and assistive devices for the blind or deaf. At the same time, the list also lists the circumstances in which you cannot apply for tax relief.

New house consumption tax relief

GST/HST Tax Refund (New House Tax Refund)

If you buy, build or decorate a house on a large scale, and the price of this house is less than 450 thousand yuan, then you can apply for a new house consumption tax reduction.

Buyer's plan

(buyers? S plan)

Through the homebuyer program, you can withdraw 25,000 yuan from your registered retirement savings plan (RRSP) to help you buy or build this house. But remember, this money is to be replenished.

If you want to apply for this project, you need to meet all the terms put forward in the project. If you apply for someone else, the recipient needs to meet the conditions.

Please refer to CRA's tax return T 1036 to find out whether you are eligible to apply.

Tax relief of rental income

(Rental income)

If you rent a house that you own or use, you can fill in the T776 tax return and report your rental income and expenses, such as advertising, insurance and interest on your loan to buy or decorate the house. You can apply for tax relief for this part of the expenses.

However, it is necessary to distinguish between rental income and commercial income. If you rent a house to others and only provide basic services, including heating, lighting, parking or laundry equipment, then the income you earn is rental income. If you provide extra services to tenants, such as cleaning rooms, security and food, you may be engaged in a business activity.

The more services you provide, the more likely your renting behavior will be commercialized.

Tax relief for the sale of houses

Generally speaking, consumption tax does not apply to the sale of houses, but in some cases, you can apply for consumption tax relief after the sale of houses. For example, if you build this house, you may have to pay consumption tax.

If the house you sell is not your main residence, you need to declare your capital gains to the government and pay taxes; If the house you sell has been your main residence for at least two years in the past five years, then some of your capital gains are tax-free.

In addition, married taxpayers with the same tax returns will get 500,000 tax-free capital gains; Single person, tax-free capital gains 250 thousand.

In addition, some moving expenses can also apply for tax relief.

BC Province Housing Purchase Tax Relief

If you are a resident of BC province and buy a new property or a house that has been renovated on a large scale, you have to pay consumption tax at the purchase price, and the purchaser can apply for a refund of the share of consumption tax collected by the provincial government.

If the builder pays consumption tax when building and decorating the house, and also pays consumption tax when buying wood and decoration materials, these fees can also be reduced or exempted.

Tax relief of family business

Due to the development of science and technology, more and more people choose to work from home. If you work from home, you can apply for tax relief for some family company expenses, including heating, family insurance, electricity and cleaning appliances. However, whether the tax relief for the main residence is worthwhile or not should be carefully considered.