Credits & Rebates:
Home Renovation Tax Credit for Seniors and Persons with Disabilities
British Columbia offers a home renovation tax credit for seniors and persons with disabilities. The credit is worth up to $1,000 per year and can be claimed for the cost of eligible home modifications. The credit allows you to deduct 10% of your qualifying expenses from BC income taxes.
To be eligible, you must be 65 years or older or have a disability that prevents you from completing essential daily activities on your own. However, those living with a senior or someone with a disability can claim the deduction on their tax return.
First Time Home Buyer Incentives in Canada
The Government of British Columbia provides rebates on land transfer taxes for first-time home buyers. The amount that you can qualify for depends on the value of the property.
If the value of the home that you are purchasing has a fair market value of less than $500,000, then the First Time Home Buyers’ Exemption would cover the full amount of the transfer tax. That means you will not have to pay any land transfer tax. Afterwards, a sliding scale is used up to $525,000 to determine the land transfer tax incentive and the remaining tax payable (see the chart below). Properties above $525,000 will not qualify for the First-Time Home Buyers’ Program.
Work From Home Tax Credit in Canada
The work-from-home tax credit allows you to deduct from your income taxes if you worked at home throughout COVID-19. The credit is available to employees who worked from home during the 2020 to 2022 tax years. It’s designed to reimburse you for expenses related to your home office, such as supplies, phone, and internet costs.
There are two methods to calculate the credit; the flat rate and the detailed method. While the detailed method is more challenging, you may receive a larger deduction. Continue reading to learn the eligibility requirements and which way is best for you.
Eligibility Criteria
- You must meet all of the following criteria:
- You worked from home due to the COVID-19 pandemic, or your employer required you to work from home.
- You spent more than 50% of your time working from home for four consecutive weeks or longer in 2020.
- If using the detailed method, you have completed signed Form T2200S or Form T2200 from your employer.
- You use personal funds to pay for the expenses during the period.
Non-Resident Speculation Tax in Canada
- Foreign buyers must pay a 25% tax when buying property in Ontario. BC foreign buyers must pay a 20% tax on top of the property value in certain regions.
- A foreign buyer purchasing a $1,000,000 house in Vancouver must pay an additional $200,000 in taxes upon closing.
- A foreign buyer is generally someone who isn’t a citizen or resident of Canada.
- Each province has exemptions or rebates/credits to help foreign buyers.