Home Buyers tax credit (HBTC) for persons with disabilities

SUMMARY
A person with a disability or a relative of a person with a disability who has purchased a qualifying home after 2009 can claim an additional tax credit on line 369 of their income tax return in the year they purchased the home.

In 2009 the government introduced a tax credit named the First-time home buyers' tax credit (HBTC). The program was designed for first time home buyers described as people who did not own homes in the past 4 years however the government added a section for persons with disabilities that did NOT require them to be buying their first home as follows:

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first-time home buyer. However, the home must be acquired to enable the person with the disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

Definition - Person with a Disability
To Qualify as a person with a disability you need to have been approved for a Disability Tax Credit (DTC). To see if you qualify for a DTC, you can click here.

Definition - Relative of a Person with a Disability
Relative is not restricted for this section of the Income Tax Act (under sec 118.05) so, any relation no matter how distant should be able to apply. For a relative of a person with a disability to claim this credit, the person whom will be occupying the home must be approved for the disability tax credit prior to the acquisition of the qualifying home and you must be related to them and acquiring a qualifying home for their benefit. You must intend that the related person with a disability occupies the home as a principal place of residence no later than one year after it is acquired.

Definition - Qualifying Home
A qualifying home is a housing unit located in Canada acquired after January 27, 2009. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings all qualify. A share in a co-operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify. Also, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence, no later than one year after it is acquired.

OTHER Q&A

Do I need to submit supporting documents at income tax filing time?
Supporting Documents are not required to be submitted with your income tax return but should be available should CRA request them.

What year do I file the tax credit?
You claim the Tax Credit in the year the qualifying home is acquired based on the land registration system in your region not the year it is occupied.

How do I claim this tax credit?
It is claimed on line 369 of your Schedule 1 on your income tax return.

How much is this worth?
It is a non-refundable tax credit so it is only worth something to you if you pay federal income tax (i.e. line 420 of your tax return is greater than 0). If you paid more than $750 on line 420, this credit currently would get you an additional refund worth $750 (subject to change with changing tax rates).

Can I transfer the tax credit to my spouse and who should claim the credit?
The owner or their spouse can claim the HBTC or share it but in total you can only claim it once. Best thing to do is to look at your line 420 of both of your income tax returns and decide based on who is paying $750 of federal tax and if neither of you are paying that much, then split it between you to get the most tax back.

Can I get a Tax Credit for a home that I have purchased in the past and how many years back can we go?
Yes, so long as the person with the disability had already been approved for the disability tax credit (DTC) prior to the home purchase. Generally, the CRA will allow you to amend a tax return for up to 10 years, however, it is important to note that this is not a taxpayer's right but rather something that the government calls a fairness provision.

OTHER Sources of Information
click here for the Canada Revenue Agency CRA current information
click here for the Canada Revenue Agency CRA Site with the historical archived information

Important Note:
This page is intended to be for informational purposes only and not tax advice. All information on this page is subject to changes beyond our control and may not be updated. You should consult with your professional tax advisor before you file any documents for tax purposes. We are happy to help in any way that we can.