Income Tax Act

Marginal note:Definitions

• 118.05 (1) The following definitions apply in this section.

  qualifying home

  qualifying home in respect of an individual, means a qualifying home as defined in subsection 146.01(1) that is acquired, whether jointly or otherwise, after January 27, 2009 if

  • (a) the home is acquired by the individual, or by the individual’s spouse or common-law partner, and

    • (i) the individual intends to inhabit the home as a principal place of residence not later than one year after its acquisition,

    • (ii) the individual did not own, whether jointly or otherwise, a home that was occupied by the individual in the period

      • (A) that began at the beginning of the fourth preceding calendar year that ended before the acquisition, and

      • (B) that ended on the day before the acquisition, and

    • (iii) the individual’s spouse or common-law partner did not, in the period referred to in subparagraph (ii), own, whether jointly or otherwise, a home

      • (A) that was inhabited by the individual during the marriage to or common-law partnership with the individual, or

      • (B) that was a share of the capital stock of a cooperative housing corporation that relates to a housing unit inhabited by the individual during the marriage to or common-law partnership with the individual; or

  • (b) the home is acquired by the individual for the benefit of a specified person in respect of the individual, and

    • (i) the individual intends that the home be inhabited by the specified person as a principal place of residence not later than one year after its acquisition by the individual, and

    • (ii) the purpose of the acquisition of the home by the individual is to enable the specified person to live in

      • (A) a home that is more accessible by the specified person or in which the specified person is more mobile or functional, or

      • (B) an environment better suited to the specified person’s personal needs and care. (habitation admissible)

  specified person

  specified person in respect of an individual, at any time, means a person who

  • (a) is the individual or is related at that time to the individual; and

  • (b) would be entitled to a deduction under subsection 118.3(1) in computing tax payable under this Part for the person’s taxation year that includes that time if that subsection were read without reference to paragraph (c) of that subsection. (personne déterminée)

• Marginal note:Rules of application

  (2) For the purposes of this section, an individual is considered to have acquired a qualifying home only if the individual’s interest (or for civil law, right) in it is registered in accordance with the land registration system or other similar system applicable where it is located.

• Marginal note:First-time homebuyers’ tax credit

  (3) In computing the tax payable under this Part by an individual for a taxation year in which a qualifying home in respect of the individual is acquired, there may be deducted the amount determined by multiplying $10,000 by the appropriate percentage for the taxation year.

• Marginal note:Apportionment of credit

  (4) If more than one individual is entitled to a deduction under this section for a taxation year in respect of a particular qualifying home, the total of all amounts so deductible shall not exceed the maximum amount that would be so deductible for the year by any one of those individuals in respect of the qualifying home, if that individual were the only individual entitled to deduct an amount for the year under this section, and if the individuals cannot agree as to what portion of the amount each can so deduct, the Minister may fix the portions.