TAX QUESTIONS? YOU ASK LAH!
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Q: I have never purchased any residential property. If I jointly purchase a house with someone who is not a first-time homebuyer, am I still qualified to be a first-time homebuyer to claim the tax relief for first-time residential property loan interest?
A: Yes. The tax relief for first-time residential property loan interest is assessed on the taxpayer separately. Where a house is jointly purchased, each co-owner should apportion the housing loan interest in accordance with the prescribed formula. If you qualify as a first-time homebuyer, you may claim tax relief on your apportioned share of the housing loan interest, while the non-qualifying co-owner is not entitled to the relief.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru
