I've been asked a few times lately for more information about the Government's recently announced first time home buyer bonus / credit and how this bonus will work. Is it an offset against income tax, is it treated like an expense to reduce taxable income, what is going on?
This first time home buyer credit has nothing to do with a home buyer's income tax return. The home buyer, assuming he or she meets the criteria, applies for the bonus. If they are eligible, the government approves the application and sends a cheque to the applicant for the amount claimed.
Of course all the criteria must be met but if this is correct, it sounds like a great program for First Time Home Buyers, as it is basically free money. You don't even need to insert information on your income tax return.
Here's a link to more information on the program:
If you've been thinking about buying your first home, now may be the best time ever! Please call me if you'd like to learn more.