Here are tax-saving tips:
- Principal Residence Exemption: Designate your primary residence to be exempt from capital gains tax when you sell.
- First-Time Home Buyer’s Tax Credit: Claim the non-refundable tax credit if you’re a first-time homebuyer.
- Land Transfer Tax Refund: Apply for a refund on the land transfer tax as a first-time homebuyer.
- Home Accessibility Tax Credit: Claim expenses for home renovations that make your home more accessible if you or a family member have a disability.
- Home Buyer’s Plan (HBP): Use your RRSP savings to buy or build a home and repay it over 15 years without tax penalties.
- Municipal Property Tax Credits: Check for any local property tax credits or rebates available in your municipality.
- Rental Property Deductions: Deduct mortgage interest, property taxes, insurance, maintenance, and utilities if you own a rental property.
- Home Office Deductions: Claim a portion of your home expenses if you use part of your home for business purposes.
- Depreciation on Rental Property: Claim capital cost allowance (CCA) on the building to reduce taxable rental income.
- Joint Ownership: Split rental income and expenses with co-owners to benefit from lower tax brackets.
- Eco-Friendly Renovation Credits: Claim credits or rebates for energy-efficient renovations under programs like the Canada Greener Homes Grant.
- Moving Expenses: Deduct moving expenses if you move for a new job or to run a business.
- Property Management Fees: Deduct fees paid to property managers for rental properties.
- Tax-Free Savings Account (TFSA): Use savings from your TFSA for down payments without tax implications.
- Home Equity Line of Credit (HELOC): Deduct interest on a HELOC if the funds are used to earn investment income.
- Mortgage Insurance Premiums: Deduct CMHC mortgage insurance premiums over a period of time.
- Real Estate Investment Trusts (REITs): Invest in REITs for real estate exposure and potential tax advantages.
- Capital Losses: Use capital losses from other investments to offset capital gains on real estate sales.
- Incorporate Rental Properties: Consider holding rental properties in a corporation for potential tax deferral benefits.
- Tax Planning with Professionals: Regularly consult with a tax advisor or accountant to ensure you are maximizing all available tax benefits and staying compliant with changing tax laws.
By leveraging these tips, you can potentially reduce your tax burden and maximize your savings on real estate ownership in Ontario.