Tax Filing Deadline Approaching: Last-Minute Tips for Homeowners

As the tax filing deadline approaches, homeowners in the Greater Toronto Area may be wondering how to maximize deductions, claim eligible credits, and ensure a smooth filing process. Whether you're a first-time homeowner or a seasoned property owner, these last-minute tax tips from Ana Bastas Realty can help you stay organized and potentially save money.

1. Gather Your Home-Related Tax Documents

Before filing, ensure you have all necessary documents related to your homeownership, including:

• Mortgage interest statements (if applicable)

• Property tax bills

• Receipts for home renovations or improvements

• Energy-efficient upgrade receipts (for applicable tax credits)

• Rental income and expense records (if you rent out part of your home)

2. Claim the Principal Residence Exemption (PRE)

If you sold your home in the past year, ensure you report the sale on your tax return to qualify for the Principal Residence Exemption. This exemption helps many homeowners avoid capital gains tax on the sale of their primary residence.

3. Take Advantage of the Home Office Deduction

If you worked from home in 2024, you may be eligible to claim home office expenses. The simplified method allows a flat rate deduction, or you can claim a portion of expenses like utilities, internet, and maintenance based on the workspace size in your home.

4. Check for Eligible Home Renovation Credits

Homeowners who made energy-efficient upgrades may qualify for government incentives or tax credits. Look into federal or provincial programs, such as the Canada Greener Homes Grant, which may offer financial benefits for eligible renovations.

5. Claim Moving Expenses (If Eligible)

If you moved for work, school, or business purposes, some moving expenses may be tax-deductible. Keep receipts for moving services, transportation, and temporary accommodation costs.

6. Review Property Tax and Mortgage Interest Deductions

While mortgage interest is not deductible for most Canadian homeowners, it can be if the home is used for rental income or business purposes. Additionally, property taxes may be deductible under certain circumstances.

7. File Your Taxes on Time to Avoid Penalties

The deadline for most individuals to file their personal income tax return is April 30, 2025. If you owe taxes, make your payment by this date to avoid interest charges and penalties.

8. Consider Professional Tax Assistance

If you’re unsure about which deductions apply to you, consulting a tax professional can help ensure you take full advantage of available credits and avoid costly mistakes.

Final Thoughts

Understanding homeowner-related tax deductions and credits can lead to significant savings. Whether you're preparing your home for sale or simply looking to optimize your tax return, these last-minute tips can help.

Need real estate guidance in the Greater Toronto Area? Contact Ana Bastas Realty today!