Tax season is upon us; this is a difficult time of the year for most people. But here at The McClelland Financial Group, our focus is on simplifying and enhancing the financial lives of Canadians. This past year was hectic for real estate investors, whether moving from your principal home, buying a rental property, or even renovating an existing property. There are some tax benefits available to you if you, like many others, invested in real estate in 2021.
Property Taxes (Owners) & Rental Payments (Tenants)
Landlords can claim property taxes for the period when a rental property was available for rent. Employed and self-employed tenants can claim partial rent payments as a home office expense if they use their home for employment or business purposes.
Home Buyers’ Amount
You could claim a $5,000 tax credit if you purchased your first home and did not live in another home you or your partner owned in the past four years.
GST/HST New Housing Rebate
You may qualify for the GST/HST New Housing Rebate if you did substantial renovations or purchased or built a new home. A similar provision exists for landlords under certain conditions.
Home Accessibility Tax Credit
If you renovate your home to make it more accessible to those with mobility issues, you could be eligible for the home accessibility tax credit. The renovations must be permanent, make the home more accessible or reduce the potential harm to the qualifying individual, and be completed by qualified professional tradespeople. You can save taxes on an eligible renovation costing up to $10,000.
If you moved at least 40 kilometres closer to your work, a new business, or post-secondary schooling, you could claim expenses from that move. Qualifying expenses include storage costs, travel expenses, temporary living expenses, the cost of cancelling a lease, and more.
As your lifestyle changes, new taxable benefits will be available to you. We hope one of these taxable benefits can help you this year. If there are any further questions, reach out to your advisor or speak with your accountant to see if you would be eligible.