| The home renovation tax credit - A great way to | | | | retaining walls, a new furnace, water heater, or painting |
| save on tax if you have planned on a home | | | | the exterior or interior of the house. Expenditures that |
| renovation, now may be the time. | | | | cannot be claimed include normal repairs, carpet |
| This is a tax credit which means that you receive a | | | | cleaning, furniture or appliances, financing costs, or tools |
| 15% tax credit for expenses greater than $1000. To | | | | that retain a value after the renovation. |
| qualify for the maximum $1350 tax credit you must | | | | If you are condo owner you might be eligible for the |
| spend at least $10,000 of which $9000 is eligible for the | | | | credit even if you don't spend any money on your unit. |
| tax credit ($9000 x 15% = $1350). This is a temporary | | | | The share you have in spending on improvements to |
| tax credit and home improvements must be | | | | the common areas of the condo also qualify for the |
| completed between Jan 27 2009 and Jan 31 2010. | | | | 15% credit. Ask your condo manager to find out if this |
| Expenditures made in Jan 2010 must be claimed on | | | | applies to you. |
| the 2009 tax return. | | | | The credit is also limited to one per family, which |
| Amounts above $10,000 are not eligible for the tax | | | | includes the tax payer's spouse or common -law |
| credit, but depending on your marginal tax rate the | | | | partner and any children under the age of 18 |
| home renovation tax credit may be a better | | | | throughout the year. If the taxpayer who claims the |
| alternative than other tax saving measures. For | | | | credit cannot fully utilize it the unused portion may be |
| example at a 30% marginal tax rate you would need | | | | transferred to one or more of the other family |
| to contribute approximately $4,500 to your RRSP to | | | | members. |
| generate a tax refund equal to the maximum credit | | | | To further increase the amount of government |
| available for the home renovation tax credit. | | | | subsidies that you could receive, determine if the |
| The renovations must be made to a personal use | | | | renovations are eligible for the eco-energy |
| property such as a home, cottage, or condominium. | | | | retrofit-homes grant. Grants of up to $5,000 are |
| The types of home renovations that qualify, generally | | | | available to offset the cost of making energy efficient |
| must be of an enduring nature and integral to the | | | | home improvements such as adding insulation, and |
| dwelling. The expenditures include building materials, | | | | replacing windows and doors. If you are considering a |
| labour, equipment rentals, and the cost of permits. | | | | new energy efficient furnace or heat pump, the home |
| Examples given by revenue Canada include | | | | renovation tax credit, and eco-energy grant could |
| Renovating a kitchen or bathroom, new flooring, decks, | | | | result in a big saving. |