Your home is one of the largest investments you’ll make, so be sure that you’re using it to its full effect to get the maximum tax deduction on your tax return. Despite the absence of claiming the cost of your home as an expense in Canada (unlike our neighbours to the south), there are other ways to use your home to save on taxes.
Here are just a few:
- Avoid Capital Gains Tax on the Sale of Your Home: You can sell your primary residence and not pay taxes on the profit.
- Use The Home Buyer’s Plan: You and your spouse can qualify for up to 50,000 dollars in tax free loans.
- First-time Homebuyers Save: As a first time home buyer, you can get a tax credit worth up to $750.
- Home-Based Business Tax Deductions: If you run a business from home or even rent out a room, then you can claim some of your home costs as a tax deduction.
- Claim Your Moving Costs: If you move closer to school or work, you can get deductions for your moving expenses in addition to travelling expenses.