The First-Time Homebuyers' Tax Credit is a provincial non-refundable income tax credit of up to $1,050 to eligible taxpayers on qualified homes. To claim this tax credit on your Saskatchewan income tax return use Form SK428, available from the Canada Revenue Agency.
SASK FIRST TIME BUYER'S TAX CREDIT DETAILS
- The First-Time Homebuyers' Tax Credit provides a provincial non-refundable income tax credit to eligible first-time homebuyers.
- Eligible homebuyers acquiring qualified homes after December 31, 2011 will be able to claim the personal income tax credit.
- This income tax measure provides a provincial non-refundable income tax credit of $1,050 to eligible taxpayers, determined by applying the provincial tax credit rate of 10.5% to the first $10,000 of an eligible home purchase. A similar federal non-refundable income tax credit of $750, determined by applying the federal tax credit rate of 15% to the first $5,000 of an eligible home purchase, is also available.
- Eligibility rules mirror those of the existing federal tax credit. Under the federal rules, an eligible individual acquiring the home (and, if applicable, the spouse or common law partner jointly purchasing the home) must not have previously owned another home during the calendar year in which the home was purchased or in any of the previous four years.
- The individual and/or spouse/common law partner must occupy the home within one year of purchase.
- By following the federal rules, a qualifying home is either a new or existing home located in Saskatchewan that is eligible for the federal Home Buyers' Plan where home purchasers are permitted to withdraw funds from their RRSPs to finance the home purchase. Qualifying homes include single-family houses, semi-detached houses, townhouses, mobile homes, condominium units and apartments in multi-unit houses or apartment buildings. However, if you received a loan through the Graduate Retention Program First Home Plan, then you may not claim the Saskatchewan First-Time Homebuyers' tax credit.
- Saskatchewan matches the federal rules for extending tax credit eligibility to the acquisition of homes that are more accessible or functional for people with disabilities.
- If you purchase a home during the calendar year, claim the tax credit on the Saskatchewan income tax return for that year, which is filed in the spring of the following year.
- The non-refundable nature of the tax credit means that you must be subject to Saskatchewan income tax to benefit from the tax credit. However, you can share the tax credit with a spouse or common law partner, if applicable.
