People are increasingly having to move either because of new job opportunities or transfers (whether voluntary or not) to other locations. If you’re facing a similar situation, you may be thinking about selling your current property and moving closer to your new workplace. And if that’s the case, there may be some great tax breaks you can take advantage of…
For starters, your real estate broker’s commission and all moving expenses may be 100% deductible from any future income earned in your new location.
Consult your accountant on how to apply to an owner occupant his income property.
According to federal and provincial tax laws, when a person moves to a new property because he is or will be employed in the new community or will be launching a business there, all eligible moving costs are tax-deductible. This is true as long as the new property brings him at least 40 km closer to his full-time or parttime employment.
The Home Buyers’ Plan (HBP) is a government program which allows first-time owner buyers like you to gain financial autonomy. You can become happy owners while at the same time building a retirement fund within a Registered Retirement Savings Plan (RRSP). A double advantage!
And what’s more, while you’re fulfilling your dream of owning a property, you’ll also be getting income tax refunds worth thousands of dollars. For spouses who work, these refunds can be between $10,000 and $21,000, which is quite sufficient to purchase your first property. The HBP allows each taxpayer to withdraw up to $20,000, tax-free, from their Registered Retirement Savings Plan (RRSP) to purchase a property.
Please, consult your accountant or mortgage broker.