As tax season gets underway, many people are gathering documents and touching base with their accountant or tax professional. If you own a home, or had any changes to your mortgage, living situation, or employment last year, there are a few tax-related items that are easy to overlook. The following is a more detailed overview of some common areas that often come up for homeowners during tax season.
Below are a few items you may want to review as you prepare your 2025 personal tax return:
• Purchased a home in 2025: If you (or your spouse or partner) bought a home last year, you may be eligible to claim the Home Buyers’ Amount. This federal non-refundable tax credit is available to first-time home buyers, and in some cases to those purchasing due to disability-related needs. Eligible buyers can claim up to $10,000, which can reduce federal taxes owing by up to $1,500. If two eligible buyers purchased together, the amount can be shared. Full CRA details are available here:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31270-home-buyers-amount.html
• Moved for work or relocation: If you relocated for employment or business purposes and the move brought you at least 40 km closer to your new work location, certain moving expenses may be deductible. This often applies to job changes, transfers, or relocations, but the expenses generally must be claimed against income earned at the new location, and timing matters.
• Working from home: If part of your home is used for employment or self-employment, you may be able to claim a portion of home expenses. The rules differ significantly between employees and self-employed individuals, and not all costs are eligible. It’s important your tax preparer understands how your space is used so this is calculated correctly.
• Sold a home or changed how a property is used: Even if no tax is payable, the sale of a principal residence still needs to be reported to the CRA. This reporting requirement is often missed. Changes in use, such as converting a home to a rental or vice versa, can also have tax implications that are worth reviewing.
• Rental or investment properties: If you earned rental income, own an investment property, or used borrowed funds (such as a mortgage or HELOC) for investment or business purposes, there may be income reporting and interest deductibility considerations. The purpose of the borrowed funds is key, so clear documentation is important.
• Mortgage changes during the year: If you refinanced, consolidated debt, added a HELOC, or otherwise restructured your mortgage in 2025, it’s worth flagging this for your tax preparer. How and why funds were accessed can affect how interest and expenses are treated for tax purposes.
Because tax rules and eligibility can be very specific, the best source of confirmation is always the Canada Revenue Agency or your trusted tax advisor. Our goal is simply to help you know what questions to ask and what areas may be worth a closer look.
Tax season is also a natural checkpoint to step back and review how your mortgage fits into your broader financial picture. If questions come up around a past purchase, refinance, upcoming renewal, or future planning, we’re always happy to help.
Wishing you a smooth and stress-free tax season.
