Wednesday, February 5, 2014

Buying a house? Here’s how to get a big tax refund

Canadians can take $25,000 out of their registered retirement savings, plan under the home buyer's plan to buy your first home, however this sure doesn’t go as far as it used to.

You will have to pay it back over the next 15 years without incurring any penalty. For a couple that means $50,000.

However, since the dollar amount has been stuck at $25,000 since 1999 .... the house prices have continued to escalate. At $50,000, you’re barely making the minimum down payment in some ares across Canada.

If you know you are buying your first home in the next 90 days, you make a $25,000 contribution or $50,000 for two people. That means a big refund in April. You then withdraw the $25,000 or $50,000 to pay for that initial home.

Click here to read more....