Paul Butler, B.A.
RE/MAX ABOUTOWNE REALTY CORP., Brokerage Independently owned and operated
Mobile: 416-276-3460Office: 905-842-8000Toll Free: 1-888-338-9001

Home Renovation Tax Credit

September 22, 2009

The clock is ticking!!!

This program by the Federal Government runs from January 27th 2009 to February 1st 2010 and is a tax credit of up to $1350.  The formula is 15% of what you spend but the amount must be over $1,000 and under $10,000.   I am no accountant but how it works is if you spend $5,000 on eligible expense, when you submit your income tax you claim a credit of $600. ($5000 - $1000 x 15% equals $600)  All the detailed information is available on the government web site which I have created a link to as follows:

http://www.cra-arc.gc.ca

The key aspects are that an eligible dwelling can be your home, cottage or even a condominium.  The improvements must be made to personal use areas of the dwelling, you can't include expenses that were paid to a family member but you can include expenses that were paid to a contract.   The total expenses are per household but can be divided between household partners and the expenses must be over $1,000 and under $10,000. 

What are my expense claims?  I have installed a new patio so that expense is allowed.  I did it myself so I can only claim the cost of materials.  I have purchased building materials to do some work in my basement so those expenses will be allowed and I have purchased some window coverings, light fixtures and central air conditioning.   All of these expenses are allowed.  However, I have just purchased a new TV and this expense is not allowed.

A new line will be on the personal income tax form to submit your credit.  Just make sure the expense is made before February 1st 2010.  

 

Good luck and happy shopping!


Tagged with: tax credit eligible expenses claim credit government dwelling
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Contact Me

Paul Butler, B.A.
RE/MAX ABOUTOWNE REALTY CORP., Brokerage Independently owned and operated
1011 Upper Middle Rd. E Unit C20E
Oakville, ON  

Mobile: 416-276-3460Phone: 905-842-8000Fax: 905-842-8482Toll-Free: 1-888-338-9001
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