First-Time Home Buyers’ Tax Credit (HBTC)
Coming into force: 2022 and subsequent taxation years.
Budget 2022 proposes to increase the amount used to calculate the First-Time Home Buyers’ Tax Credit to $10,000 (from $5,000), which would provide a tax credit of up to $1,500 to eligible home buyers. This amendment applies to the 2022 and subsequent taxation years.
More details from the Canada Revenue Agency can be found here.
Two-year Ban on Non-Canadians Purchasing Residential Property
Coming into force: January 1, 2023.
The two-year ban on non-Canadians purchasing residential property comes into force on January 1, 2023. The federal government released the regulation on December 21, 2022. Regulations includes definitions, exceptions, and enforcement elements to help individuals understand and comply with the law.
Please consult our News2Me article for more information.
Residential Property Flipping Rule
Coming into force: January 1, 2023.
Budget 2022 proposed to introduce a new rule to ensure profits made from flipping residential real estate are subject to full taxation. Specifically, profits arising from dispositions of a residential property (including a rental property) that was owned for less than 12 months would be deemed to be business income.
Bill C-32 defines ‘flipped property’ as: “a housing unit of a taxpayer located in Canada that was owned by the taxpayer for less than 365 consecutive days (less than a year) prior to the disposition of the property”. The measure would apply in respect of residential properties sold on or after January 1, 2023.
Full details from the Government of Canada can be found here.