The Canada Revenue Agency is launching the 2018 tax filing season, which means Canadians are preparing paperwork for 2018 tax returns and researching potential tax rebates.

The Ontario Energy and Property Tax Credit

The Ontario Energy and Property Tax Credit has two components; an energy component and a property component. It was implemented to help low to moderate income residents in Ontario. The credits are funded by the Province of Ontario and are administered by the Canada Revenue Agency.

To apply, you must complete the ON-BEN Application for the Ontario Trillium Benefit. The amount of credit you are eligible for depends on your family income, but as your family income increases, your tax return will also increase. Find out if you qualify for the tax credit.

The amount you receive is calculated on how much rent or property tax you paid for your principal residence in Ontario throughout the previous year and the amount of energy costs paid for your principal residence. Alternatively, it can be based the amount of your accommodation costs paid for living in a public long-term care home in Ontario. Furthermore, it’s possible to still qualify for this payment even if you do not owe income tax.

RRSPs and the Home Buyers’ Plan

Contributing to your registered retirement savings plan (RRSP) ensures you save for retirement, while also significantly reducing taxes or being exempt from current taxes.

If you’re planning to buy a home, having an RRSP means you qualify for The Home Buyers’ Plan (HBP). The HBP allows you to withdraw up to $25,000, tax-free, in a calendar year from your RRSPs to purchase or build a home for yourself or for a relative with a disability. Once the money is withdrawn, you have 15 years to replace the money in your RRSP.

Homebuyers typically prefer a RRSP opposed to a TFSA because it allows homebuyers to save and pay it back faster. The RRSP and HBP program is an excellent way to save for your future, save taxes and acquire equity.

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First Time Ontario Homeowners

First-time buyers or Ontario residents that haven’t owned a home in the four previous years can claim $5,000 toward the purchase of a qualifying residence including a house, condo or mobile home.

This tax credit was introduced in the 2009 federal budget as a way to help new homeowners cover closing costs and expenses. However, if you miss claiming this credit the year of your purchase, you can file an adjustment to the previous tax return.

HST Tax Benefits on Ontario Properties

The Ontario HST rebate for new homebuyers can ensure a hefty return, but navigating the HST rebate is complicated and many homeowners are unaware of how to properly apply for the appropriate tax return. However, missing out on the rebate can make a huge difference to your bottom line since it can be equal out to the tens of thousands of dollars.

The New Home Rebate (NHR) is tailored to buyers that intend on living in the property they’ve purchased, while the New Residential Rental Property Rebate (NRRPR) is tailored for investors and landlords. If you’ve recently purchased or are planning to purchase a property as an investment property or with the intention of living in the property, you should promptly apply for the rebate.

It is imperative that you choose your representative carefully when making a significant financial investment. The Sohar offers extensive knowledge of Oakvillle, South Burlington, North Burlington, Hamilton and surrounding area to ensure you make an informed decision. We listen to your needs, develop a custom tailored plan, and ensure every detail is taken care of so you can find the right home for you and your family.