home renovation tax credit ut back into your pocket - renovate and claim the hrtc

Canada's Home Renovation Tax Credit (HRTC)- Laying new sod
provides a one-year, temporary 15% income tax credit- Labor costs
on eligible kitchen and home renovation expenses for- Professional fees
work performed or supplies purchased from January- Building materials
27, 2009 to February 1, 2010. Canadian homeowners- Fixtures
can put some of their tax money back into their- Equipment rentals
pocket provided they take advantage of this year'sSome examples of ineligible HRTC Tax Credit
tax deduction.expenses include:
Kitchens Etc. encourages homeowners who are- Purchases of furniture and appliances
renovating or upgrading their home, to keep all of their- Purchases of tools
original receipts. Before preparing their 2009 tax return,- Carpet cleaning
Kitchens Etc. will provide an itemized list of eligible- General maintenance contracts (e.g. furnace cleaning,
products or services used in their kitchen or bathroomsnow removal, lawn care, pool cleaning).
renovations to help claim their home renovation taxSource : Canada Revenue Agency and the
credit expenditures.Department of Finance Canada .
The Home Renovation Tax Credit may be claimed onSCENARIOS OF KITCHEN RENOVATIONS AND
expenses over 1,000.00 but not more then 10,000. As aHRTC INCENTIVES.
result, the home improvement tax rebate will provide* Stephen recently had Kitchens Etc. install new
Toronto homeowners up to a maximum $1,350.00 taxAurora Maple Cappuccino Cabinets with glass doors
savings. ($9,000 x 15%)and a new Granite countertop and sink. The costs
WHO QUALIFIES FOR THE HOME RENOVATIONincurred were over 18,000.00, but because of the 9,000
TAX CREDIT (HRTC)?eligible expenditures, they received a tax relief of
In order to qualify for the Home Renovation Tax Credit$1,350.
(HRTC), expenses can be claimed for:* Caroline and Mike had Kitchens Etc. install new
- Renovations and improvements to a home, cottageIntegra Cherry Nutmeg Cabinets with glass doors,
or condo unit that is used as a principal residence.handles and knobs. They also ordered a Silestone
- Building materials or supplies used for home(Sienna Ridge) Countertop. They incurred $20,000 in
renovations or kitchen and bathroom renovations suchexpenditures renovating the kitchen. Caroline and Mike
as:can claim a HRTC Tax Credit of $1,350.
- PermitsFor instance, if homeowners spent $1,000.00 that is the
- Contractorsdeductable, but if they spent $2,000, they would
- Laborersreceive a tax credit of $150.00. If they spend $5,000,
- Equipment rentalsthey would receive a tax relief of $600.00. If
Some examples of eligible HRTC Tax Credithomeowners spend over $10,000, they still only receive
expenses include:a tax credit based on $10,000.
- Renovating a kitchen, bathroom or basementINVEST IN YOUR COMMUNITY
- New carpet or hardwood floorsEvery time a Toronto homeowner invests in home
- Building an addition, deck, fence or retaining wallrenovations or kitchen and bathroom renovations, they
- A new furnace or water heaterare helping create jobs for construction workers,
- Replacing your air conditioning systemcontractors and building suppliers in their own
- Upgrading the insulation in your homecommunity. Isn't that what boosting the economy is all
- Painting the interior or exterior of a houseabout?
- Resurfacing a driveway