Tax advice
Buying a first home
The First-Time Home Buyers’ Tax Credit is available at both the federal and Quebec levels.
This non-refundable tax credit is designed to help first-time homebuyers cover the costs associated with this purchase and to promote access to homeownership by providing tax relief to those acquiring their first principal residence or who, due to a severe disability, must find a more accessible home. These costs, which include notary fees, taxes, and appraisal fees, can represent a significant burden for homebuyers, who generally have to cover these expenses while maintaining cash for their down payment.
The maximum value of the credit is calculated by multiplying the amount of the credit ($10,000) by the lower personal income tax rate for the year (15% in Quebec and 12.525% at the federal level). This is a fixed amount regardless of the expenses actually incurred to acquire the home. Thus, the Quebec credit, combined with the federal tax credit, could allow eligible Quebec buyers to obtain up to $2,752.50 in tax relief following the purchase of their first home: $1,252.50 from the federal government, taking into account the Quebec abatement, and $1,500 from the Quebec government.
If several people acquire their first home together, they can share the credit. Also, any unused portion of the credit can be claimed by the individual’s spouse or common-law partner. An unused credit at the end of the year cannot be carried forward to another year.
You can claim the credit if both of the following conditions apply:
- You (or your spouse or common-law partner) purchased an eligible home.
- You have not lived in another home that you (or your spouse or common-law partner) owned during the year of acquisition or the previous four years (first-time home buyer).
https://www.revenuquebec.ca/en/citizens/tax-credits/home-buyers-tax-credit/
Without Prejudice.