| The 2009 Tax forms are out and instructions on | | | | my opinion, this can be accomplished by the following |
| claiming the credit for the new Home Renovation Tax | | | | method: |
| Credit can be found on page 38 of the 2009 General | | | | The eligible period for expenses is after January 27, |
| Income Tax and Benefit Guide. To begin, you list your | | | | 2009 and before February 1, 2010, this is a total of 369 |
| expenses on Schedule 12. For condominium owners, | | | | days. If you divide the total expenses by the number |
| this may include amounts spent by the Corporation, in | | | | of eligible days, then multiply that number by the days |
| addition to your personal expenditures. | | | | an owner was in possession of the unit, that should be |
| One of the qualifying conditions for condominium | | | | the amount they are eligible to claim. For example, for |
| owners is if "the condominium has notified you in | | | | a condominium spent $9,000 on repairs and an owner |
| writing of your share of the expenses". This places the | | | | whose proportionate share is 3.687% of the total |
| onus on the Corporation to calculate and report to the | | | | expenses purchased and closed their unit on |
| owners their share of eligible expenses. | | | | November 1, 2009, the calculation could be as follows: |
| My recommendation to my condominium boards is to | | | | $9,000 x 3.687% = $331.83 / 369 = $0.90 x 92 = |
| calculate the eligible expenses, copy all the necessary | | | | $82.73 (92 being the number of days from November |
| invoices, then to advise each homeowner of their | | | | 1, 2009 to January 31, 2010). This owner would be |
| shared based on the same proportionate percentages | | | | eligible to claim $82.73 towards the Home Renovation |
| used to calculate their common element fees, and | | | | Tax Credit. |
| include copies of the invoices. | | | | In the absence of clear direction from the Canada |
| There has been some pondering over how to | | | | Revenue Agency on how to deal with the issue of unit |
| distribute the eligible expenses for those condominium | | | | sales, his solution is clear and, in my opinion, is the most |
| units that have changed ownership during the year. In | | | | fair way of distributing the credit. |