How new Real Estate taxation changes in 2023 could affect you

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 How new Real Estate taxation changes in 2023 could affect you

Article from https://www.cbc.ca/news/politics/tax-changes-2023-1.6696505

First Home Savings Account


The FHSA allows certain homebuyers to save up to $40,000 toward a home purchase, with a maximum annual contribution of $8,000 over five years. Contributions to the FHSA are tax-deductible and withdrawals to purchase a home are tax-free.

Hugh Woolley, a Vancouver-based chartered professional accountant, said it's important to note that the FHSA isn't just for first-time homebuyers. Those looking to buy a home who haven't owned one for four years or more are also eligible.

"So this can also be for people who are re-entering the housing market, who've been out of the housing market for a number of years," Woolley said.


Another new tax benefit related to housing is the Multigenerational Home Renovation Tax Credit.

The refundable tax credit will provide up to $7,500 "in support for constructing a secondary suite for a senior or an adult with a disability to live with family members," Finance Canada said in an email.

Eligible families can claim 15 per cent of a maximum $50,000 in home renovation and construction costs to build a secondary housing suite.


The Bank of Canada today published its 2023 schedule for the release of its policy interest rate decisions and quarterly Monetary Policy Report.

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